Koto Manufacturing Co., Ltd. is divesting its subsidiary Koito Europe Limited to Shapers' Group Limited to streamline operations amid declining Japanese vehicle market share in Europe.

Target Information

Koto Manufacturing Co., Ltd. (Koto) has decided to divest its subsidiary, Koito Europe Limited, a specialized manufacturer of automotive lighting equipment based in Worcestershire, UK. This decision comes in response to the declining market share of Japanese vehicles in Europe. As of the fiscal year ending December 2024, Koito Europe reported a revenue of 10.8 billion yen, a negative operating income of 426 million yen, and total net assets valued at 7.27 billion yen.

Koito Europe Limited provides a range of automotive lighting products, focusing particularly on signal lights and related equipment. The subsidiary's operations are now being sold as part of Koto's strategy to resize its local operations in Europe.

Industry Overview

The automotive lighting industry in the United Kingdom plays a critical role in the broader automotive market, which has been undergoing significant changes due to increasing regulatory standards, technologic