ITOCHU and Kawasaki Motors Announce Capital and Business Alliance

ITOCHU Corporation and Kawasaki Motors, Ltd., announced a strategic capital and business alliance on November 8. The partnership aims to leverage ITOCHU's expertise and global network to accelerate Kawasaki Motors' growth plans in the powersports market, particularly in North America.

ITOCHU will acquire 20% stake in Kawasaki Motors, Ltd. for ¥80 billion (US$598 million) by April 2025, subject to regulatory approvals. Additionally, the two companies will establish a joint venture in the United States to provide financing solutions for powersports products, with operations commencing in April 2025. ITOCHU will hold a 50% stake in the joint venture, while Kawasaki Motors Corp., U.S.A. will hold the remaining 50%.

The North American powersports market, valued at nearly US$15 billion, is experiencing significant growth driven by the rise of outdoor recreation activities. Kawasaki Motors, a leader in the motorcycle segment, plans to capitalize on this trend by introducing new products and expanding its presence in the four-wheel off-road vehicle market.

This alliance builds upon a prior collaboration between ITOCHU and Kawasaki Motors during their overseas expansion in the 1960s. The renewed partnership aligns with Kawasaki Motors' Group Vision 2030, a strategic plan aiming to achieve ¥1 trillion (US$7.4 billion) in sales revenue.

The joint venture will address a key market need: financing options for high-value powersports products like four-wheel off-road vehicles. The venture will offer a streamlined credit review process and competitive financing solutions for both dealers and customers, enhancing customer experience and sales growth.

Beyond North America, the alliance aims to leverage ITOCHU's established network to explore growth opportunities in emerging markets like CIS, Middle East & Africa, and Latin America. Additionally, the partnership will target established motorcycle markets like India and East Asia.

"[This alliance] aligns with our new management policy 'The Brand-new Deal' to invest in growth and downstream businesses closer to consumers,” said ITOCHU in a presser released on their website.

About ITOCHU –

Itochu Corporation is a leading Japanese multinational trading company, known for its diverse business portfolio spanning various industries, including textiles, machinery, metals, energy, chemicals, and food. Founded in 1858, the company operates globally with a strong presence in over 60 countries. Itochu engages in a wide range of activities such as import/export, investment, and product development, leveraging its extensive network to connect markets worldwide. The company focuses on sustainability and innovation, aiming to create long-term value through strategic investments and partnerships while addressing global challenges like climate change and resource management.