Honda’s $1.1B Bet on the Software Car Era

Honda will take a 61 percent stake in Astemo to tighten tech control and speed its software-defined vehicle push

23 Feb 2026

Honda is making a calculated push to secure its place in the software driven auto age. In December 2025, the company said it will invest about ¥152.3 billion, roughly $1.1 to $1.2 billion, to lift its stake in key supplier Astemo to 61 percent. The deal is expected to close in early fiscal 2026, pending regulatory approval.

By buying an additional 21 percent from Hitachi, Honda gains majority control of a supplier that sits at the heart of its braking, powertrain, and advanced safety systems. That matters more than ever. Cars are no longer static machines but connected platforms that evolve through code, data, and constant updates.

Honda says deeper ownership will speed up development of software and AI while tightening coordination across engineering teams. In practical terms, that could translate into quicker rollouts of digital features and smoother integration between hardware and software. In a market shaped by over the air updates and advanced driver assistance systems, even small delays can dull a brand’s edge.

The move reflects a wider industry rethink. Traditional supply chains were built around long hardware cycles and gradual change. Today, vehicles are expected to improve continuously, much like smartphones, and that demands closer alignment between those who design the parts and those who write the code.

After the deal closes, JIC Capital and Hitachi will remain minority shareholders. Honda gains strategic control while sharing some financial risk, a structure that balances ambition with caution.

There are trade offs. Greater vertical integration can add complexity and reduce flexibility in sourcing, especially at a time when electric vehicle demand is uneven and margins remain tight. Still, the direction is clear: automakers want tighter command over the systems that define the modern car.

For Honda, this is more than a financial transaction. It is a statement that in the race toward software defined mobility, control of the digital backbone may matter as much as horsepower once did.