Denso (TYO:6902) will sell its 20% stakes in four engine air filter manufacturers in China, Poland and the US to Toyota Boshoku (TYO:3116) by year-end, Nikkei reported Thursday.

The deal, estimated at several billion yen, marks another step in Denso's shift away from gasoline vehicle components toward electrification. Denso will retain filter sales and servicing operations, while Toyota Boshoku will take over production, according to the report.

The move is expected to strengthen Toyota Boshoku's competitiveness and boost orders beyond the Toyota group (TYO:7203), the report said.

Denso has been streamlining combustion-related businesses, having sold its fuel pump module unit to Aisan Industry in 2022 and agreed to transfer its spark plug operations to Niterra this year, according to the report.