Japan / Germany - Hino Motors Ltd, Toyota Motor Corporation’s commercial vehicle unit headquartered in Tokyo, and Mitsubishi Fuso Truck and Bus Corporation (MFTBC) – based in Kawasaki and majority-owned by Germany’s Daimler AG, are progressing with their plans to merge the two companies, according to Japanese media sources familiar with the negotiations.

The two Japanese truck manufacturers originally signed a Memorandum of Understanding (MoU) in May 2023, outlining their intention to combine their operations under a jointly owned holding company. The aim was to integrate their commercial vehicle development, production and component procurement operations, to create a “globally competitive Japanese commercial vehicle manufacturer” capable of competing with China’s fast-expanding commercial vehicle manufacturers.

The two companies originally planned to complete the merger by the end of 2024, but in early 2024 they announced that they were postponing the merger indefinitely.

Unconfirmed reports in Japan in April suggested that the merger talks are now back on, with a formal joint announcement expected to be made in May. The two companies are understood to be planning to establish a jointly-owned holding company, to be listed on Tokyo’s main stock exchange in April 2026.

Hino and MFTBC are understood to have agreed to keep their respective global sales operations separate, while integrating their R&D and production operations and supply chains to maximise manufacturing efficiency and improve economies of scale.

The Japan Fair Trade Commission is said to be close to completing its fair-trade review. The merger would reduce Japan’s medium and heavy commercial vehicle industry to two main groups, after Isuzu Motors acquired UD Trucks in 2021.

Hino delivered a total of 125,556 commercial vehicles globally in 2024, most of which in Asia, while Daimler Truck Asia reported 125,234 commercial vehicle sales – mostly vehicles sold by MFTBC.