Image Credits: Hitachi
Hitachi, Ltd. has announced its strategic decision to withdraw from the home air conditioner market, a move that underscores its broader strategy to concentrate on core businesses and high-growth opportunities.
The Japanese conglomerate is selling its stake in a joint air conditioner venture with U.S.-based Johnson Controls International PLC to Germany’s Robert Bosch GmbH. Hitachi’s share in the transaction is valued at $1.4 billion (approximately ¥218 billion). This joint venture, established in 2015, had Hitachi holding a 40% share and Johnson Controls 60%. The sale is expected to be finalized by June 2025. Following the acquisition, the joint venture will operate as a wholly-owned subsidiary of Bosch, which will maintain the Hitachi brand through a licensing agreement for residential air conditioners.
Despite this exit from the home appliance segment, Hitachi remains positive about its prospects in the commercial air conditioning sector, particularly in response to growing demand from data centers. To sustain its presence in this market, a Hitachi subsidiary specializing in electric appliances will acquire the factory assets of the joint venture.
Hitachi’s history in air conditioning dates back to 1952, when it pioneered the sale of window air conditioners in Japan. The company’s iconic polar bear symbol, introduced in 1959, became synonymous with its residential air conditioning products by 1975. Going forward, Hitachi will channel its resources and efforts into its core business areas and emerging high-growth sectors, streamlining its portfolio by divesting non-core businesses.