Honda Delays Astemo Consolidation to Strengthen Software-Defined Vehicle Strategy

Honda Motor Co Ltd announced on June 30, 2026, that it has revised the timeline for making Astemo, currently accounted for as an equity-method affiliate, into a consolidated subsidiary. The transaction, which was previously expected to be completed during the first quarter of FY2027 ending March 31, has now been rescheduled to the end of the third quarter of the current fiscal year. The company clarified that the adjustment relates to procedural requirements rather than any change in its strategic direction.

According to Honda, the revised schedule is necessary because approval procedures and other required processes with regulatory authorities have not yet been completed in certain countries. As a result, the planned acquisition of additional shares and the consolidation process will proceed once all required approvals have been obtained. The company emphasized that the revised timing reflects administrative and regulatory considerations while maintaining the original objective of completing the transaction.

In December 2025, Honda announced its plan to acquire an additional 21% ownership interest in Astemo from Hitachi. Once completed, Honda's shareholding in Astemo will increase to 61%, enabling the company to consolidate Astemo as a subsidiary. The ownership increase remains unchanged despite the revised completion schedule, and Honda continues to advance the transaction in accordance with applicable regulatory requirements.

Honda continues to view Astemo as an important strategic partner because of its strengths in both hardware and software technologies. The company believes Astemo's continued growth is indispensable for enhancing Honda's software-defined vehicle development capabilities while improving overall cost competitiveness. By strengthening collaboration through majority ownership, Honda aims to accelerate its long-term software-driven vehicle strategy and leverage Astemo's technology expertise to support future mobility development.

Frequently Asked Questions

Why did Honda postpone the Astemo consolidation?
Honda postponed the consolidation because approval procedures and other necessary regulatory processes have not yet been completed in certain countries. The company stated that the delay is administrative in nature and does not reflect any change in its strategic objectives. Honda still intends to acquire the additional shares, increase its ownership to 61%, and consolidate Astemo as a subsidiary once all required approvals from the relevant authorities have been secured.