Toyota and Daimler merge: A new giant in the truck market!

Toyota and Daimler merge: A new giant in the truck market!

Hino Motors, the truck division of Toyota, today announced that it will merge with Daimler Truck subsidiary Mitsubishi Fuso. This announcement comes in response to increasing uncertainty caused by US trade tariffs and new competitors from China. The merger aims to create a new strong Japanese truck manufacturer to increase the industry's competitiveness, such as Inquirer reported.

The integration of the two companies is expected to be completed by April 2026. During this time, Daimler Truck and Toyota each plan to hold a 25 percent stake in the newly created listed holding company. The remaining 50 percent could potentially be sold to the Prime Market of the Tokyo Stock Exchange, although exact details are not yet available.

Strategic goals of the merger

The main objectives of the merger are to improve operational efficiency in research, development and production as well as to electrify the product portfolios of both brands. The new holding company, which will be based in Tokyo, will own 100 percent of the shares in Mitsubishi Fuso and Hino Motors. Karl Deppen, the CEO of Fuso, will also be CEO of the new holding company while the agreement still needs to be approved by relevant boards, shareholders and authorities. Loud Electrive, the merger is described as “truly historic.”

Both companies intend to strengthen the automotive industry base in Japan and Asia. This includes developing new models that use innovative fuels and technologies, including electric and hydrogen-powered trucks and autonomous driving systems. This step is particularly important as Japanese car manufacturers have lost competitiveness in the electric vehicle sector. The world's largest electric vehicle market is currently dominated by China, led by companies like BYD, which is pushing ahead with its international expansion.

Focus on technology and sustainability

The collaboration will also include the use of CASE (Connected, Autonomous, Shared, Electric) technologies to address carbon neutrality and logistics efficiency challenges. Hydrogen is seen as a crucial part of the electrification strategy, especially because Toyota plays a leading role in fuel cell development. In addition, Mitsubishi Fuso already has the eCanter, a light battery-electric truck, on the market and is participating in a consortium to explore battery replacement solutions.

Hino Motors shares fell more than 12 percent following the merger announcement, highlighting the high uncertainty and interest in the market. With this merger, Daimler Truck and Toyota are not only positioning themselves as strong competitors in the truck sector, but are also focusing on the future of mobility within the framework of new technologies and sustainable solutions.