Highway Holdings is a small contract manufacturer that makes metal, plastic, and electronic components, subassemblies, and finished products for large multinational industrial companies — primarily European OEMs. End products include parts for photocopiers, laser printers, vacuum cleaners, stepping motors, LED power supplies, and washing machine components. Highway Holdings operates through two segments: Metal Stamping and Mechanical OEM (~61% of revenue) and Electric OEM (~39% of revenue). The company is heavily dependent on a small customer base — three customers accounted for ~88.5% of net sales in FY25 — and European customers represent ~85% of revenue. Highway Holdings' core competitive strategy revolves around low-cost manufacturing: the company has progressively shifted labor-intensive work from Shenzhen, China to Yangon, Myanmar, where labor costs are lower and EU preferential tariff treatment for least-developed countries reduces landed costs for European buyers. The Shenzhen facility remains active but has been largely automated, running with roughly 40 workers. Tooling costs are borne by customers, limiting Highway Holdings' upfront capital needs. The company is also attempting to move up the value chain toward more complex subassemblies and is developing its own line of brushless DC motors — an early-stage effort to shift from pure contract manufacturing (OEM) toward selling proprietary designed products (ODM) at better margins.