Hino and Mitsubishi Fuso to Establish Holding Company, Go Public in April Next Year

Hino Motors, a subsidiary of Toyota Motor Corporation in Japan, and Mitsubishi Fuso Truck and Bus Corporation, under Germany's Daimler, have begun the final procedures for a merger agreement. The two companies plan to reach a final merger agreement as early as next month and list the new entity on the Tokyo Stock Exchange in April next year. If the integration proceeds according to schedule, it is expected to create the world’s largest alliance in the medium and heavy-duty truck sector.

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According to the Nihon Keizai Shimbun (Nikkei) on April 22, Hino and Mitsubishi Fuso have started coordinating opinions with the goal of reaching a final agreement on management integration. The two companies will establish a new holding company, under which Hino and Mitsubishi Fuso will become wholly owned subsidiaries. The new holding company will be listed on the Tokyo Stock Exchange in April next year, with parent companies Toyota and Daimler each holding an equal share. Toyota, Daimler Truck, Hino, and Mitsubishi Fuso aim to reach a final agreement on the establishment of the holding company and management integration as early as May. Through this management integration, the two companies will cooperate not only in the development and production of trucks and other commercial vehicles, but also in next-generation technologies such as hydrogen vehicles and autonomous vehicles.

The Nikkei explained, "The commercial vehicle industry is undergoing structural transformation through electrification and autonomous driving, while also facing challenges from the rise of Chinese manufacturers and US tariffs," adding, "The four companies are pooling their technological capabilities in an effort to survive."

Previously, Hino and Mitsubishi Fuso agreed in May 2023 to establish a new company and integrate management by the end of 2024, but the final contract was postponed indefinitely after Hino's engine certification issue surfaced in the United States. However, after Hino paid a $1.2 billion fine to US authorities and reached a settlement in January this year, the engine quality issue was resolved. This led to a rapid acceleration of negotiations for integration.

Although direct comparison is difficult due to differing standards, the Nikkei reported that upon completion of the merger between Hino and Mitsubishi Fuso, their combined market share in the medium and heavy-duty truck segment is expected to reach approximately 14%, making it the world’s largest alliance in this field.

According to market research firm S&P Global Mobility, Daimler Truck sold 407,261 medium and heavy-duty trucks in 2024, ranking second globally, while Hino sold 130,199 units including light trucks and buses. As the merger between the two companies has been repeatedly delayed, Chinese companies such as China FAW Group have expanded their presence in the commercial vehicle market. In addition, the tariff policy of the Donald Trump administration in the United States has emerged as a major variable in the automotive market.

The landscape of Japanese commercial vehicle manufacturers is also expected to change. After the integration, Japanese commercial vehicle makers are likely to be reorganized into two camps: Hino-Mitsubishi Fuso and Isuzu-UD Trucks (subsidiary).

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