Isuzu shifts China engine unit to equity method affiliate

Isuzu Motors Limited resolved to change its consolidated subsidiary, Isuzu (China) Engine Manufacturing Co., Ltd. (Isuzu China), to an equity-method affiliate. Isuzu China, currently 50.61% owned by Isuzu, operates in Chongqing, China, focusing on engine component manufacturing and sales. This move comes amid significant structural changes in the Chinese automotive market, particularly the shift towards vehicle electrification.

The restructuring involves a capital reduction of 1.22% of Isuzu China’s capital, after which Isuzu’s ownership will become 50.00%. Qingling Motors (Group) Co., Ltd. will hold 30.43% and Qingling Motors Co., Ltd. will hold 19.57%. As part of this change, Isuzu will receive a special dividend of 26,484,338.95 yuan. The change is expected to be finalized by February 2026.

Isuzu China's net assets for the fiscal year ended December 2024 were 2,196 million yuan, with total assets of 2,797 million yuan. Revenue for the same period was 826 million yuan, resulting in an operating profit of 2 million yuan and a net profit of 28 million yuan. Isuzu anticipates this change will have a minor impact on its consolidated financial results.