 "Japan's JTEKT buys out Sona Group in their steering JV")
Japan's JTEKT Corporation has acquired Sona Autocomp Holding Limited's (SAHL) 25.12 percent stake in their JV, Sona Koyo Steering Systems Limited (SKSSL), for about Rs 419.28 crores. Besides, JTEKT and SAHL, Maruti Suzuki India also owns 6.94 percent stake in SKSSL.
Sona Koyo and JTEKT came together in 1985 to start production of steering in India. While JTEKT has a technical assistance agreement with SKSSL for steering parts, it also sells semi-processed products and parts to SKSSL. Sona Koyo Steering Systems Limited, the flagship company of the auto component maker Sona Group, is currently the largest manufacturer of steering systems for the passenger car and utility vehicle market in India.
With the acquisition of additional SKSSL shares, JTEKT will deepen its relationship with SKSSL, and combined efforts in providing swift customer services and meeting their expectations by a multitude of business administration in various areas including design, purchasing, and quality will help JTEKT provide better products and services to the customers.
SKSSL will play a key role for JTEKT in the Indian market. “By promoting management efficiency and strengthening competitiveness, JTEKT can ensure business development for both companies and increase its presence in the fast-growing industry of India,” said JTEKT in a press statement.
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