Toyota Boshoku Plans New Automotive Seat Joint Venture

Three Companies Sign Memorandum to Explore Automotive Seat Joint Venture

Toyota Boshoku Corporation, Delta Kogyo Co., Ltd., and Toyo Seat Co., Ltd. announced on October 29, 2026, that they had signed a memorandum of understanding to begin considering the establishment of a joint venture primarily focused on automotive seat development and sales. The companies will proceed with detailed discussions on the proposed business structure, with Toyota Boshoku expected to hold a majority of the voting rights in the new company. The agreement establishes a framework for examining the proposed collaboration, rather than confirming the formal establishment of the venture.

Proposed Joint Venture to Strengthen Business Competitiveness

The three companies aim to strengthen the competitiveness of their respective automotive seat businesses by combining their individual strengths through a collaborative business structure. The proposed venture is expected to focus primarily on seat development and sales, bringing the companies together within a shared business framework. However, several important details remain undecided. The establishment date, specific ownership ratios, business details, and other contractual terms have not yet been finalized. The companies will determine these arrangements through further discussions, while maintaining the premise that Toyota Boshoku will hold majority voting rights in the proposed entity.

Previous Collaboration Through U.S. Manufacturing Joint Venture

The proposed arrangement builds on the companies' existing experience with automotive seat manufacturing collaboration in the United States. In September 2019, Toyota Boshoku America and AKI USA, the U.S. joint venture between Delta Kogyo and Toyo Seat, established TOYOTA BOSHOKU AKI USA in Athens, Alabama. The venture was established with equal ownership between the participating parties to supply seats to Toyota and Mazda's joint vehicle manufacturing plant in the United States. This earlier collaboration provided the companies with an established business relationship and experience working together within a shared manufacturing operation.

Seat Component Production Began in 2021

TOYOTA BOSHOKU AKI USA expanded its manufacturing activities in 2021 by beginning production of seat components for the Toyota Corolla Cross. The production milestone demonstrated the existing cooperation between the participating businesses in supporting automotive manufacturing requirements in the United States. The Alabama operation also provides relevant background to the latest memorandum, as the companies have previously worked together through a jointly owned business arrangement. Although the newly proposed venture has a different ownership premise, the earlier U.S. collaboration represents an established example of their cooperation in automotive seat-related manufacturing activities.

Japanese Automotive Seat Market Shares in 2025

Toyota Boshoku held the leading position with a 34% market share, while TACHI-S, the parent company of Toyo Seat, ranked second with 12%. NHK Spring and Fuji Seat were tied for third place, each accounting for 10% of the market. Delta Kogyo held a 5% share, while Toyo Seat accounted for 4%. These figures provide market context for the proposed collaboration and illustrate the participating companies' existing positions within Japan's automotive seat supply industry.

Japan Automotive Seat Supplier Market Share in 2025

Ownership Structure and Next Steps

The memorandum of understanding marks the beginning of detailed discussions regarding the proposed business arrangement. Toyota Boshoku is expected to hold a majority of the voting rights, while the precise ownership percentages and responsibilities of the participating companies remain undecided. The companies have also not announced a definitive establishment date or finalized the new entity's detailed business operations. Further discussions will determine these conditions and other terms. Until those decisions are confirmed, the proposal should be regarded as an ongoing consideration rather than an established joint venture with finalized ownership and operating arrangements.

Industry Impact & Outlook

The proposed collaboration could strengthen the participating companies' positions in the automotive seat supply industry by bringing their respective business capabilities into a more coordinated structure. Toyota Boshoku's leading 34% share of Japan's 2025 market provides important context for its proposed majority voting position, while Delta Kogyo and Toyo Seat bring additional established automotive seat business experience. For automotive manufacturers and suppliers, the arrangement could create opportunities for closer coordination in seat development and sales. Its eventual competitive significance will depend on the ownership structure, business scope, and operating arrangements agreed upon during the companies' forthcoming discussions.

Frequently Asked Questions

1. Which companies are considering the new automotive seat joint venture?
The proposed joint venture involves Toyota Boshoku Corporation, Delta Kogyo Co., Ltd., and Toyo Seat Co., Ltd. The three companies signed a memorandum of understanding on October 29, 2026, to begin considering the establishment of a business primarily focused on automotive seat development and sales. Their objective is to strengthen the competitiveness of their respective automotive seat businesses by combining their individual strengths. The companies will determine the establishment date, ownership ratios, business details, and other conditions through further discussions.

2. What will Toyota Boshoku's ownership position be in the proposed joint venture?
Toyota Boshoku is expected to hold a majority of the voting rights in the proposed joint venture, although its precise ownership percentage has not yet been determined. The memorandum establishes majority voting rights as the premise for the companies' forthcoming discussions. The specific ownership ratios, establishment date, business details, and other terms remain under consideration. Consequently, the final ownership structure will depend on the outcome of the detailed discussions between Toyota Boshoku, Delta Kogyo, and Toyo Seat.

3. What previous joint venture experience do the three companies have in the United States?
The companies have previous collaboration experience through TOYOTA BOSHOKU AKI USA, established in Athens, Alabama, in September 2019. Toyota Boshoku America and AKI USA, the U.S. joint venture between Delta Kogyo and Toyo Seat, established the operation with equal ownership. Its purpose was to supply seats to Toyota and Mazda's joint vehicle manufacturing plant in the United States. In 2021, the venture began producing seat components for the Toyota Corolla Cross, demonstrating their existing cooperation in automotive manufacturing.

4. What were the leading companies in Japan's automotive seat market in 2025?
Toyota Boshoku ranked first in Japan's automotive seat market in 2025, with a 34% market share. TACHI-S followed in second place with 12%, while NHK Spring and Fuji Seat shared third place with 10% each. Delta Kogyo accounted for 5% of the market, and Toyo Seat held 4%. These figures illustrate the competitive positions of the companies and their related businesses within Japan's automotive seat supply industry.

5. When will the proposed automotive seat joint venture be established?
The companies have not announced a confirmed establishment date for the proposed joint venture, as the agreement currently covers the consideration and detailed discussions of the business arrangement. Specific ownership ratios, business details, and other terms also remain undecided. Toyota Boshoku, Delta Kogyo, and Toyo Seat will determine these matters through further discussions. The October 29, 2026, memorandum therefore represents an initial step toward a potential business collaboration rather than confirmation that the new company has already been established.