Denso will exit its stakes in four overseas air filter manufacturers, transferring its 20% holdings to Toyota Boshoku before year-end, Nikkei reported. The transaction values the shares at several billion yen, with each billion yen equivalent to roughly $6.6 million.
The deal covers production facilities in China, Poland and the U.S. that the two companies established together. Toyota Boshoku, which specializes in automotive interiors and filtration systems, will assume full ownership of the operations.
The divestment reflects Denso’s strategic retreat from components tied to internal combustion engines. Air filters serve a critical function in gasoline-powered vehicles by removing contaminants before they reach the engine—a need that diminishes as automakers accelerate their shift toward battery-electric powertrains.
Despite relinquishing its ownership position, Denso plans to maintain its sales and service operations for filters in the U.S. and other markets. Toyota Boshoku will take over production responsibilities at the overseas plants.
The restructuring comes as both companies navigate the automotive industry’s transformation. Denso, a major supplier within the Toyota group, has been reallocating resources toward electrification technologies as demand patterns shift away from traditional powertrains. The transaction allows Toyota Boshoku to consolidate its filter business while Denso redirects capital to higher-growth segments.
