The Competition Commission of India (CCI) on Tuesday approved Japanese automaker Honda Motor Co's proposal to acquire an additional 21 per cent stake in automotive components manufacturer Astemo from Hitachi.
"The proposed combination relates to the acquisition of 21 per cent voting interest in Astemo, Ltd. (Target) by Honda Motor Co., Ltd from Hitachi, Ltd," the regulator said in a release.
Following the transaction, Astemo will become a consolidated subsidiary of Honda, in line with the Japanese automaker's plan announced last December.
In a post on X, the fair trade regulator said: "CCI approves acquisition of 21 per cent voting interest in Astemo, Ltd by Honda Motor Co., Ltd".
Honda Motor Co is the flagship entity of the Honda Group and is engaged in the manufacturing and sale of automobiles, two-wheelers, power products and automotive components, besides undertaking research and development activities.
In India, Honda Motor operates across automobiles, motorcycles, power products and component manufacturing businesses.
Astemo was created through the integration of Hitachi Automotive Systems, Ltd, and three Honda subsidiaries, Keihin Corporation, Showa Corporation and Nissin Kogyo Co Ltd.
In December 2025, Honda announced that it would acquire an additional 21 per cent stake in Astemo from Hitachi, increasing its ownership and converting the company from an equity-method affiliate into a consolidated subsidiary.
After the completion of the transaction, Honda will own 61 per cent, Hitachi 19 per cent and 20 per cent for Japan's sovereign wealth fund JIC Capital.
JIC Capital is a wholly-owned subsidiary of the Japan Investment Corporation.
Deals beyond a certain threshold require approval from CCI, which keeps a watch on unfair business practices and promotes fair competition in the marketplace.
