DENSO Scraps Transfer of Spark Plug and Exhaust Gas Sensor Business to Niterra

DENSO has requested the termination of the business transfer agreement covering its spark plug and exhaust gas sensor business, which it entered into with Niterra Co., Ltd. on September 1, 2025. The sensor business covers oxygen sensors and air-fuel ratio sensors. After sincere discussions, the two companies agreed not to proceed with the transfer and decided to enter into an agreement terminating the original deal. DENSO said the request followed a review of its business strategy in light of changes in the market environment.

Both companies shared the view that advancing product evolution across their respective technology domains and establishing sustainable supply frameworks commensurate with market scale are common challenges facing the automotive industry, as electrified vehicles gain wider adoption toward a carbon-neutral society and powertrain diversification progresses in response to differing energy conditions across regions and countries. Since the July 2023 memorandum and the September 2025 agreement, they explored ways to enhance the competitiveness and ensure the stable supply of internal combustion engine-related products by combining the technological expertise and manufacturing strengths both had cultivated over many years. The market environment, however, evolved from what was originally anticipated: electrification continued to advance steadily, but demand for diverse powertrains persisted longer than initially expected, reflecting differing energy conditions and regulatory environments across regions and countries.

DENSO reassessed its business strategy under its CORE 2030 Mid-Term Management Plan, which is set out around developing products and providing systems that support diversified mobility. It concluded that continuing to operate the business would be optimal for maintaining and strengthening its ability to respond to increasingly diverse mobility needs, and therefore requested that Niterra terminate the agreement, explaining the change in its policy regarding the transfer. After sincere consultations, the two companies agreed not to proceed with the business transfer. Going forward, DENSO said it will continue to respond flexibly to evolving market conditions and customer needs while contributing to a sustainable mobility society and the development of the automotive industry.