Toyoda Gosei UK, which produces components for Toyota, Nissan, Renault and Honda, said it was responding to changes in the global sector and ‘significant reduction’ in UK customer demand.
The firm employs 251 at its UK headquarters on Centurion Business Park in Templeborough, Rotherham It also has plants at Gorseinon, Swansea and employs a total of 458 people.
A consultation period with employees is under way.
The Rotherham site manufactures rubber body seals and opened in 1999. The Swansea factory, which opened in 2011, makes moulded and painted car parts.
Toyoda Gosei UK managing director Shigenori Matsuo said: "We understand and regret the uncertainty that this will cause for everyone at the Swansea and Rotherham sites and are doing all we can to support our employees throughout the consultation process."
A spokeswoman for TGUK said it was working with its parent company to discuss the future of the UK operation.
"There isn't one factor that has resulted in the announcement today," added the spokeswoman.
The company said it had previously reorganised its business in Europe, selling shares in a German subsidiary and moving some production to its main manufacturing site in Czechia.
Toyoda Gosei Co, which is based in Kiyosu, Japan, opened in the UK in 1999. The Rotherham site was its first in Europe.