Ikuyo EV Bus Business Acquisition to Strengthen Autonomous Driving Development

Ikuyo Co., Ltd. announced on August 4 that its board of directors had approved the acquisition of the EV bus business operated by EV Motors Japan Co., Ltd., which is currently undergoing civil rehabilitation proceedings in Japan. The business transfer agreement is scheduled to be signed on August 10, while completion of the transaction is expected around November. The acquisition remains subject to approval by the court overseeing the civil rehabilitation process, and the purchase price will be disclosed after the necessary approval has been granted.

As part of the transaction, Ikuyo intends to acquire land, buildings, production machinery, manufacturing equipment, and other assets associated with the EV bus business. The company will also assume responsibility for product warranty obligations covering EV buses previously sold by EV Motors Japan, while no liabilities will be transferred under the agreement. For the fiscal year ended December 2025, the business being acquired generated sales of JPY 2.714 billion, while reporting an operating loss of JPY 2.690 billion and an ordinary loss of JPY 3.048 billion.

Financial Performance of the Acquired EV Bus Business

The financial results of the EV bus business illustrate the challenges Ikuyo will address following the acquisition. Despite generating significant revenue, the business recorded substantial losses during the fiscal year, highlighting the need for operational improvements and stronger management systems.

EV Motors Japan experienced worsening financial performance after quality-related defects were identified in EV buses it had delivered to customers. The company subsequently filed a petition with the Tokyo District Court on April 14 seeking the commencement of civil rehabilitation proceedings, which officially began on April 21. During the process, EV Motors Japan stated that it intended to continue rebuilding its operations with support from a sponsor capable of restoring the business.

EV Bus Business Financial Results for FY2025

Key financial figures reported for the EV bus business are summarized below.

EV Bus Business FY2025 Financial Performance

Strategic Objectives Following the Acquisition

Ikuyo expects the acquisition to strengthen its long-term technology portfolio by securing vehicle control technologies and systems integration expertise used for integrating externally developed autonomous driving systems into vehicles. These capabilities are intended to accelerate the company's autonomous driving platform development while creating opportunities to broaden its energy management business through the application of large-capacity storage batteries and advanced power control technologies.

The company also identified quality assurance, quality management systems, supplier management, and corporate governance as priority areas requiring improvement within the acquired business. Ikuyo plans to implement its own management frameworks across these functions to improve operational performance, enhance product quality, strengthen governance practices, and achieve profitability at an earlier stage.

Frequently Asked Questions

Why is Ikuyo acquiring the EV bus business from EV Motors Japan?
Ikuyo is acquiring the EV bus business to strengthen its capabilities in vehicle control technologies, autonomous driving platform development, and energy management solutions while preserving valuable assets from EV Motors Japan during its civil rehabilitation proceedings. The acquisition also enables Ikuyo to introduce its own quality assurance, supplier management, governance, and operational systems with the objective of improving profitability and enhancing the long-term competitiveness of the acquired business.