Toyota and Daimler Truck plan to merge their subsidiaries Hino Motors and Mitsubishi Fuso, forming a new Japanese truck powerhouse amid global market shifts.
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| (Left to right) Koji Sato, President and CEO, Toyota Motor Corporation / Satoshi Ogiso, President and CEO, Hino Motors, LTD. / Karl Deppen, President and CEO, Mitsubishi Fuso Truck and Bus Corporation and designated CEO of the new holding company, Karin Rådström, CEO, Daimler Truck Holding AG. Image: Toyota |
Tokyo, Japan — June 11, 2025:
Shares in Hino Motors, the truck-manufacturing arm of Japan’s Toyota, dropped sharply on Wednesday following the announcement of a merger with Mitsubishi Fuso, a subsidiary of Germany’s Daimler Truck. The strategic move, set to be finalized by April 2026, aims to create a “strong Japanese truck powerhouse” capable of competing in a rapidly evolving global automotive market.
According to a joint statement issued on Tuesday, the merger will be structured under a new publicly listed holding company. Both Toyota and Daimler Truck intend to hold 25 percent each of the new entity. The companies said the integration would enhance efficiencies across development, procurement, and production, while boosting the overall competitiveness of Japan's commercial vehicle industry.
The announcement comes as automakers face mounting challenges, including trade uncertainties with the U.S., and increased pressure from fast-growing Chinese electric vehicle manufacturers. China, home to the world’s largest EV market, has seen companies like BYD aggressively expand into international markets, outpacing traditional players.
"The companies aim to significantly enhance the competitiveness of Japanese commercial vehicle manufacturers and strengthen the foundation of the automotive industry in Japan and Asia," the joint statement said.
The new venture will prioritize innovation in alternative fuels and next-generation mobility technologies. Plans include the development of electric and hydrogen-powered trucks, as well as advanced autonomous driving systems.
Despite the strategic significance of the deal, Hino Motors shares fell over 12 percent in morning trading on the Tokyo Stock Exchange, reflecting investor uncertainty in the short term.
Industry analysts note that while Japanese automakers have led in hybrid vehicle technology, they have lost ground in the battery-electric sector. The merger may help Toyota and Daimler Truck catch up in a market where speed, scale, and clean tech are increasingly critical.
The merger is expected to reshape the landscape of the commercial vehicle industry in Asia and potentially influence global truck manufacturing trends.