Lucas-TVS, a manufacturer of electric starters, alternators, wipers and part of the multi-billion dollar TVS Group, on Monday said it has divested its entire 30% stake in India Japan Lighting (IJL) to its Japanese joint venture partner for an undisclosed sum.

India Japan Lighting is a joint venture between Lucas TVS and Japan-based Koito Manufacturing Company.

Floated as a 50:50 joint venture with Japan-based Koito Manufacturing Company way back in 1997 to manufacture lighting systems for a number of automotive OEMs in India, Lucas TVS had brought down its stake in the JV to 30% a few years ago and has further decided to exit the joint venture to focus on its core business given the emerging trend of electric vehicles in India.

With the changes taking place in the lndian automotive industry, both the partners have agreed that Koito will assume 100% ownership in IJL, towards the end of December 2019, and going forward, they will proceed to focus on their respective strategic initiatives, said a statement here.

When contacted, a Lucas-TVS spokesperson said, “We have decided to focus on our core business due to changing dynamics towards focus on electric vehicles in India.

“While we have been successful partners over the decades, it is high time that both have decided to focus on their key strategies and hence we have exited the JV. Our focus and investments in future will be on emerging technologies and products cater to electric vehicles sector.” He declined to disclose the deal value.

IJL is a leader in automotive lighting business with operations in Chennai and Bawal (Haryana).

It is setting up a third plant at an investment of `500 crore in Gujarat.

In 2018-19, it reached a turnover of Rs 800 crore and is a profitable company for long.

It is poised to serve the needs of automotive industry by offering cutting-edge technology in lighting solutions for both two wheelers and four wheelers.

It has a wide customer base, including Maruti Suzuki, Tata Motors, Toyota Kirloskar Motors, Honda, Yamaha, Isuzu, Daimler, Ashok Leyland, Nissan and Renault-Nissan, built over time ever since it commenced operations in 1997.