Adient plc completed the acquisition of a 49 % equity stake in SCI (Zhangjiakou) Co., Ltd. on December 8, 2025, creating a new joint venture that will design and manufacture automotive seating solutions for the Chinese market.
The joint venture blends Adient’s global technology expertise with SCI’s local market knowledge, positioning the partnership to deliver seating products tailored to key domestic OEMs. The collaboration is intended to accelerate product development and scale production, leveraging Adient’s advanced design capabilities and SCI’s established supply chain in the region.
Adient’s return to China follows the dissolution of its previous joint venture with Yanfeng in 2021. The company has already secured $1.2 billion in new business in China, 70 % of which is with local OEMs, underscoring its commitment to the market. The new partnership is expected to strengthen Adient’s competitive stance against rivals seeking to expand locally.
The deal aligns with Adient’s broader strategy to capture growth opportunities in China’s largest automotive market. By securing a minority stake, Adient gains a foothold that allows it to influence product direction while sharing risk with a local partner. The joint venture is also positioned to benefit from favorable tariff policies and onshoring trends that have boosted demand for domestic suppliers.
Adient’s FY2025 financials provide context for the transaction. The company reported Q4 FY2025 revenue of $3.7 billion, a 4 % year‑over‑year increase, and adjusted EBITDA of $226 million. Full‑year FY2025 sales reached $14.5 billion with an adjusted EBITDA margin of 6.1 %. Management raised its FY2025 revenue guidance to approximately $14.4 billion and adjusted EBITDA to about $875 million, reflecting confidence in continued growth. The joint venture is expected to contribute to these targets by expanding Adient’s product portfolio and market reach in China.
Headwinds for the automotive seating market include cyclical demand fluctuations and rising material costs, while tailwinds such as the shift toward electric vehicles, increased onshoring, and tariff advantages for domestic suppliers support the joint venture’s long‑term prospects. Adient’s focus on cost discipline and strategic investments in high‑margin segments positions it to navigate these dynamics while delivering value to its Chinese partners.
The partnership is a strategic milestone that enhances Adient’s ability to compete in China, aligns with its global growth strategy, and is expected to generate incremental revenue and margin expansion in the coming years.
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