Mitsubishi Electric Corp. is reportedly planning to sell its automotive equipment business, according to a Bloomberg report citing people familiar with the matter.
The company is seeking bids for the unit, with first-round proposals from potential buyers due by January 26. Those buyers could include private equity firms or other major automotive suppliers.
The sale could be valued at more than $1.3 billion, the report indicated.
Analysts note that a slowdown in electric vehicle sales, particularly in the United States, along with highly competitive conditions in key markets like China, have made it harder for parts suppliers to remain profitable. Mitsubishi Electric's automotive division specializes in inverters and automotive motors.
The manufacturer has been working to restructure this business in recent years.