Shares in Hino Motors, the truck manufacturing unit of Toyota, fell sharply on Wednesday following the announcement of a planned merger with Mitsubishi Fuso Truck and Bus, a subsidiary of Germany’s Daimler Truck.
The merger, seen as a strategic move to stay competitive amid global trade tensions and the rise of Chinese electric vehicle makers, will create a new Japanese commercial vehicle company. The two companies aim to complete the merger by April 2026 under a joint holding company listed on the stock exchange.
In morning trade, Hino shares plunged more than 12 percent.
According to a joint statement, Toyota and Daimler Truck will each hold a 25 percent stake in the new holding company. The integration is expected to boost efficiency in areas such as development, procurement, and production.
The companies hope the merger will enhance the global competitiveness of Japanese commercial vehicle makers and reinforce the automotive industry in Japan and Asia. The new entity will focus on next-generation technologies, including electric trucks, hydrogen-powered vehicles, and autonomous driving systems.
Industry experts say Japanese manufacturers have fallen behind in the electric vehicle race, having invested more in hybrids. Meanwhile, China’s EV market, the world’s largest, continues to grow rapidly, led by companies like BYD, which is aggressively expanding abroad.
