|
Hino sold more than 50,000 vehicles each year in Japan between FY2003 and FY2005. However, the automaker expects total demand in Japan for heavy- and medium-duty trucks and buses to drop sharply in FY2007 because the high demand for customers to replace vehicles due to tougher emissions control regulations that came into effect had diminished by the end of FY2006. Hino, in its sales plan for FY2007, expects sales to decline by 21.3%. The automaker forecasts that demand in Japan will continue to remain stagnant, so it is looking to overseas operations to generate and speed up its growth.
Hino achieved an operating profit in its overseas operations for the first time, in FY2006, and expects more than half of its consolidated sales to be generated outside Japan in FY2007. The automaker is targeting to sell over 150,000 vehicles overseas in the future, which is triple the volume of FY2006 sales. This would bring the total of its sales worldwide to over 200,000 when including the 50,000 vehicles sold in Japan. As a point of reference, worldwide sales in FY2006 were 102,000 units.
Hino has focused on Asia and Australia in expanding its sales overseas so far, but will now strengthen its business also in North America, Central and South America, and the Middle East. In North America, where the company launched a new vehicle model designed exclusively for sale in the region, the automaker plans to sell 9,000 units in FY2007, 30,000 in 2010, and 50,000 around 2015. The company will start producing trucks in Columbia in 2008.
As part of new developments in its overseas operations, in July 2007 Hino established a joint venture with China's Guangzhou Automobile to produce trucks and buses; in Western Europe where Hino has marketed only right-hand-drive vehicles in three countries, one of them being the UK, it intends to develop left-hand drive models designed for the region as a whole, in addition to building a network of dealers to cover all of Western Europe.
In August 2007, Hino and Isuzu announced that they would cooperate in the joint development of an exhaust gas after-treatment system and in the development of cabs for heavy-duty trucks. The two automakers, which have integrated their bus operations, aim to further expand their cooperative alliance.
■Hino plans to sell 41,000 vehicles in Japan in FY2007, although it sold more than 50,000 each year between FY2003 and FY2006
Hino sold 53,000* vehicles in Japan in FY2006, which is a drop of 3,000 from FY2005's 56,000. Sales are expected to continue to decline in FY2007, to 41,000.
*Sales are calculated on numbers of registrations and include light-duty trucks and buses.
Hino forecasts that the Japanese market for commercial vehicles, classified as those larger than light-duty trucks, will decline by 24% in FY2007 because the once heavy demand for consumers to replace vehicles because of the introduction of tougher emission controls has peaked and came to an end within FY2006. The automaker, although it claims that its market share in each segment will go up, expects its sales volume to decline to 41,000 in FY2007, compared to sales of over 50,000 a year recorded between FY2003 and FY2006.
| ■Japanese commercial vehicle market: number of newly registered vehicles by type |
(1,000 units) |
| |
FY2001 |
FY2002 |
FY2003 |
FY2004 |
FY2005 |
FY2006 |
FY2007
Plan |
Total number of
newly registered
vehicles |
Heavy-duty trucks
Medium-duty trucks |
37
39 |
38
41 |
55
62 |
49
50 |
56
50 |
58
48 |
44
33 |
Total of Heavy- and
Medium-duty trucks |
76 |
79 |
117 |
99 |
106 |
106 |
77 |
Light-duty trucks
Buses |
96
11 |
95
11 |
147
14 |
114
12 |
117
13 |
121
12 |
93
11 |
| Total |
182 |
185 |
278 |
226 |
235 |
238 |
181 |
Number of
newly registered
Hino vehicles |
Heavy-duty trucks
Medium-duty trucks |
10.3
11.8 |
10.7
12.0 |
15.5
18.2 |
16.1
15.9 |
18.3
16.3 |
17.6
15.2 |
13.8
10.9 |
Total of Heavy- and
Medium-duty trucks |
22.1 |
22.7 |
33.7 |
32.0 |
34.6 |
32.8 |
24.7 |
Light-duty trucks
Buses |
10.1
2.0 |
10.1
2.1 |
14.7
2.8 |
15.5
3.1 |
17.8
3.3 |
16.7
3.2 |
13.5
3.1 |
| Total |
34.2 |
34.8 |
51.2 |
50.5 |
55.7 |
52.6 |
41.4 |
Hino's
market share |
Heavy- and Medium-duty
trucks combined |
29.3% |
28.8% |
28.7% |
32.1% |
32.8% |
31.1% |
32.1% |
| Light-duty trucks |
10.5% |
10.6% |
10.0% |
13.5% |
15.2% |
13.8% |
14.5% |
| Buses |
18.9% |
18.3% |
20.1% |
25.5% |
25.4% |
26.4% |
27.6% |
| Source: Hino's Business Report on Apr. 25, 2007 |
| Note 1: |
Hino's FY2006 sales enabled the automaker to keep its unbroken record in Japan for the past 34 years as the largest maker of heavy- and medium-duty trucks, which are classified as vehicles with payloads of over four tons. Import vehicles are not counted. |
| Note 2: |
Heavy-duty trucks are selling better than medium-duty trucks in the industry, a trend that has continued since FY2005. This has to do with the introduction in June 2007 of a new regulation requiring special drivers' licenses for medium-duty trucks. Based on the new regulation, regular licenses allow drivers to drive trucks with payloads of only 3 tons or under, while before, regular licenses allowed drivers to drive trucks with payloads of 5 tons or under. This regulation negatively affected the operations of many independently operated companies, which had had been using medium-duty trucks and which had been outsourced to transport goods. |
■FY2006 financial results: overseas operations turned profitable but consolidated operating profit overall declined by 9.4%
Hino's FY2006 consolidated financial results show that 51,434 units were sold in Japan and 50,901 overseas, almost an equal number. Sales overseas are expected to surpass sales in Japan in FY2007.
FY2006 consolidated sales increased 7.6% year-on-year to ¥1.2877 trillion, a record number that was driven by greater sales overseas and Toyota's business expansion activities. The company's consolidated operating profit, despite the company's operations overseas turning a profit for the first time ever, declined to ¥36.7 billion, which is a drop of ¥3.8 billion year-on-year (or 9.4%) as a result of lower truck sales in Japan and higher development costs for new products and new technologies, in addition to other costs.
Hino forecasts that it will sell fewer vehicles due to lower sales in Japan but that it will nevertheless post a slight increase in business operating profit.
| ■Hino's consolidated sales and the number of vehicles it produced on an outsourcing basis for Toyota |
(units) |
| |
FY2001 |
FY2002 |
FY2003 |
FY2004 |
FY2005 |
FY2006 |
FY2007
Plan |
Apr.-Jun.
2006 |
Apr.-Jun.
2007 |
Trucks and buses
in Japan |
34,000 |
34,700 |
51,242 |
50,668 |
56,356 |
51,434 |
41,400 |
11,232 |
9,312 |
Trucks and buses
outside Japan |
21,400 |
25,700 |
35,776 |
44,818 |
45,894 |
50,901 |
56,900 |
12,346 |
14,493 |
Percentage of
overseas sales |
38.6% |
42.5% |
41.1% |
46.9% |
44.9% |
49.7% |
57.9% |
52.4% |
60.9% |
| Total of trucks and buses |
55,400 |
60,400 |
87,018 |
95,486 |
102,250 |
102,335 |
98,300 |
23,578 |
23,805 |
| Production for Toyota |
141,000 |
191,700 |
222,700 |
248,000 |
188,779 |
203,066 |
200,000 |
48,140 |
48,141 |
Source: Hino Motors Financial Results
| ■Hino's consolidated financial results |
(Million Yen) |
| |
FY2001 |
FY2002 |
FY2003 |
FY2004 |
FY2005 |
FY2006 |
FY2007
Plan |
| Sales |
Japan
Overseas
Toyota |
397,800
96,100
264,700 |
393,600
114,200
342,500 |
512,600
150,300
388,600 |
540,200
181,700
408,200 |
598,900
198,500
399,500 |
579,400
233,600
474,600 |
505,000
260,000
475,000 |
| Total |
758,640 |
850,317 |
1,051,586 |
1,130,100 |
1,196,972 |
1,287,668 |
1,240,000 |
Operating profit
Operating profit rate
Ordinary profit
Net profit |
8,991
1.2%
4,622
8,369 |
19,185
2.3%
16,582
4,959 |
44,567
4.2%
44,566
34,023 |
38,336
3.4%
39,751
17,672 |
40,522
3.4%
42,131
28,704 |
36,701
2.9%
36,841
20,059 |
37,000
3.0%
33,400
20,000 |
Capital expenditure
(Overseas) |
25,690
1,400 |
27,783
2,500 |
51,400
12,500 |
53,500
15,900 |
62,700
21,600 |
48,300
13,600 |
38,200
3,300 |
Depreciation
R & D |
31,780
27,055 |
31,480
28,754 |
29,500
30,100 |
32,400
34,900 |
35,200
34,800 |
38,300
34,400 |
43,300
36,300 |
Source: Hino Motors Financial Results
■Together with Isuzu, Hino is jointly developing an exhaust gas after-treatment system and also cabs for heavy-duty trucks
Hino announced in August 2007 that it had concluded an agreement with Isuzu to jointly develop an exhaust gas after-treatment system for diesel engines; and cabs for heavy-duty trucks. The two automakers, which integrated their bus operations in 2004, will likely expand further their commercial alliance into other areas.
■Together with Isuzu, Hino is jointly developing an exhaust gas after-treatment system and also cabs for heavy-duty trucks
| Hino and Isuzu agreed in August 2007 to jointly develop an after-treatment system for diesel engines; and cabs for heavy-duty trucks. The cabs will be based on those mounted on Hino's Profia, a heavy-duty truck that went through a full model change in 2003. (Isuzu's counterpart, the Giga, was first put on the market in 1995). |
| Sources: Hino-Isuzu joint press release on Aug. 27, 2007, Nikkan Jidosha Shinbun Aug. 28, 2007, and others |
| Note 1: |
Toyota has invested in both Hino and Isuzu and now owns 50.1% and 5.9% of share capital, respectively. |
| Note 2: |
Hino and Isuzu agreed to integrate their bus operations in 2002, establishing J-Bus, a holding company to facilitate the integration activities. Based on the agreement, Hino Body and Isuzu Bus Manufacturing were eventually merged into J-Bus in October 2004. |
| Note 3: |
The next emission controls, which will be introduced in 2009, require that NOx levels in heavy-duty diesel trucks with gross vehicle weights of over 3.5 tons be reduced to 0.7g/kWh from the current 2.0g/kWh and that the amount of PM be reduced to 0.01g/kWh from the current 0.027g/kWh. Both Hino and Isuzu are looking to adopt urea-SCR technology to comply with the regulation. |
■Japanese operations: company opts for mixed production lines capable of producing both heavy- and medium-duty trucks; plans to expand profits based on value chain mechanism
In order to improve the profitability of its Japanese operations, Hino aims to install more efficient production lines that are flexible enough to meet fast-changing demand. As a means of accomplishing this, the company will operate mix-production lines that are capable of producing both heavy- and medium-duty trucks as they move along the lines.
On the sales side, the automaker intends to enhance its entire structure, from servicing and spare parts up to used vehicles, insurance, and financing. According to Hino, this will enable the company to strengthen its customer relations and at the same time expand profits based on the value chain mechanism, which is then expected to lead to increased sales of new vehicles. As part of this strategy, Hino is now started painting operations, specifically for cabs; and establised more around-the-clock servicing facilities.
The automaker, as part of its strategy to make used vehicles one of its core business operations, will build and run a used vehicle center in the Kansai area in western Japan.
■Hino Motors: improving profitability of Japanese operations
■Plans to operate mix-production lines capable of producing both heavy- and medium-duty trucks
| The company will produce the Profia, a heavy-duty truck; and the Ranger, a medium-duty truck, on mix-production lines at its Hino plant. Sub-lines will be installed to handle the different steps required with producing trucks of different sizes. The company will invest between ¥2 billion and ¥3 billion to upgrade the production lines. Construction of these production lines will start in FY2007 at the earliest. Hino aims to increase its operating efficiency by producing the right volume of each model as a means to better reflect actual orders. |
■Company to begin in-line painting operations on Cabs in May 2007, enabling customers to specify colors of their choice
| A service called Hino Custom Color started at the Hino plant in May 2007. This service allows customers to specify the colors that they want their heavy- and medium-duty truck cabs to be painted. Customers can order specific paint jobs on an individual vehicle basis. The service, which costs customers an extra ¥80,000 to ¥100,000, features high quality surface finishing and speeds up the delivery time by two to three days. Hino expects that 10% of vehicles will be produced this way during the first year. Previously, cabs were painted white and shipped to customers who did the painting themselves. |
■Increasing the number of 24/7 service facilities to ten in Japan
| Within the next few years the company will increase the number of service facilities that remain open 24/7 to ten, from the current two, which are located in Kanagawa and Gifu. By remaining open 24 hours, these facilities enable vehicles to be inspected and repaired overnight and also offer places where drivers can take short naps. (Hino also offers a service called Dr. Dutro for customers who need help on the scene, dispatching repair help throughout Japan. The company offers a similar service overseas.) |
■Making used vehicle sales another core business
| In December 2006, Hino opened a used vehicle center in Kobe in western Japan. It plans to keep at least 200 vehicles on stock at any one time. This center, along with an existing used vehicle center in Tokyo, brings the number of automaker's used vehicle centers to two in Japan. This will enable the company to turn the used-car sales operations into another one of its core business sectors, expanding the scope of its operations further. |
| A training center was established on the premises of the Kobe used vehicle center. It is equipped with four service bays that are used to train service engineers coming from dealers across Japan. With each training session lasting four days, 900 service engineers a year are expected to complete their training there. |
Sources: Hino press releases on Dec. 4, 2006/Apr. 4, 2007, Nihon Keizai Shinbun Aug. 17, 2007, and others
■Overseas operations: Hino sets annual sales target of 150,000 units, or three times the current level, targeting sales of 50,000 in North America alone around 2015
Hino's target for annual sales overseas is 150,000 which is three times the current FY2006 sales result of 47,600. (For reference purposes, its current level of sales in Japan is 50,000.)
According to Hino, in 2005 the global market for heavy- and medium-duty trucks having gross vehicle weights of six tons or more is 2.2 million. It was 3.6 million for light-duty trucks having gross vehicle weights of two tons or more. Hino wants to create an even greater presence in the world by becoming a major player in terms of product offerings in which it competes.
Hino has concentrated on Australia
and Asia in expanding its market presence overseas. Now, though, the
company wants to strengthen its sales base in North America, Central
and South America and the Middle East too. The automaker says that it
will prioritize its markets according to market conditions and the positioning
it wants to have in each particular market in order to forge effective
sales policies.
■Hino Motors: expanding overseas sales by implementing effective policies that match a variety of market conditions
| |
Sales policy |
Target markets |
Profitability-focused
markets |
To implement activities that drive customer satisfaction and strengthen the value chain based on a superior sales structure |
Australia and Asia: Thailand, Indonesia, Australia, and Pakistan
Central and South America: Ecuador and Guatemala |
Volume-focused
markets |
To achieve much higher sales growth by strengthening its sales structure and expanding its product range |
North America: United States and Canada
The Middle East: UAE and Saudi Arabia
Africa: South Africa
Australia and Asia: Vietnam |
Markets for
future expansion |
To improve the quality and scope of its sales structure to enable future expansion activities |
Europe: UK and Turkey
Australia and Asia: Korea
Central and South America: Mexico |
Candidates for becoming
future core markets |
To first verify the viability of entering these markets |
BRICs: Brazil, Russia, India, and China
Western Europe
Eastern Europe |
Source: Hino press release on Dec. 19, 2006
| ■Hino's overseas sales by region |
(1,000 units) |
| |
FY2001 |
FY2002 |
FY2003 |
FY2004 |
FY2005 |
FY2006 |
FY2007
Plan |
| Australia and Asia |
13.1 |
17.1 |
26.6 |
34.0 |
29.6 |
27.6 |
32.0 |
| North America |
2.4 |
2.8 |
3.1 |
3.9 |
6.0 |
8.2 |
9.0 |
| Central and South America |
3.1 |
2.7 |
2.8 |
3.5 |
4.2 |
5.6 |
6.0 |
| Europe and Africa |
1.1 |
1.5 |
2.0 |
1.8 |
2.6 |
3.3 |
4.0 |
| Others |
0.7 |
0.7 |
0.9 |
0.6 |
2.2 |
2.9 |
3.0 |
| Total |
20.4 |
25.6 |
35.0 |
43.8 |
44.8 |
47.6 |
55.0 |
Source: Hino's Business Report on Apr. 25, 2007
Note: Some of the totals don't match when the figures are simply added. Nevertheless, we included the regional amounts as they were provided to us.
■Hino's overseas sales
| ■FY2006's top ten countries in sales |
(units) |
| |
FY2000 |
FY2006 |
Increase |
| Thailand |
1,660 |
8,000 |
6,340 |
| United States |
1,820 |
6,800 |
4,980 |
| Australia |
2,690 |
5,360 |
2,670 |
| Indonesia |
3,420 |
4,200 |
780 |
| Pakistan |
730 |
3,620 |
2,890 |
| Ecuador |
1,100 |
2,880 |
1,780 |
| Taiwan |
1,140 |
2,430 |
1,290 |
| Malaysia |
290 |
2,160 |
1,870 |
| South Africa |
520 |
2,000 |
1,480 |
| Canada |
800 |
1,600 |
800 |
| Others |
4,280 |
10,950 |
6,670 |
| Total |
18,450 |
50,000 |
31,550 |
|
|
■Number of countries according to sales volume
| |
FY2000 |
FY2006 |
Change |
| Over 3,000 |
1 |
5 |
4 |
Between 2,000
and 3,000 inclusive |
1 |
4 |
3 |
Between 1,000
and 2,000 inclusive |
5 |
2 |
(3) |
Between 500
and 1,000 inclusive |
5 |
8 |
3 |
| Less than 500 |
43 |
36 |
(7) |
| Total |
55 |
55 |
0 |
| Source: Hino press release on Dec. 19, 2006 |
| Note 1: |
Sales figures for FY2006 are the ones announced by Hino in December 2006 based on an estimate for the entire year. |
| Note 2: |
Hino aims to achieve annual sales of 500 units initially in new markets. In existing markets, it will increase the number of countries in which is sells 1,000 or more vehicles a year. (As of FY2006, there were 11 such countries.) |
|
■North America: sales of 9,000 planned for 2007 and 50,000 envisioned for 2015
Hino plans to sell 9,000 vehicles in North America in FY2007. (For reference sake, it sold 8,200 in FY2006.) It wants to increase its sales in North America, hoping they reach 30,000 in FY2010 and 50,000 around FY2015. The company now expects its North American operations to begin operating in the black in FY2007, although it had previously forecast that its North American operations would do so in FY2008.
Hino developed a bonnet-type
medium-duty truck exclusively for the North American market. This truck
is designed so it can come with a GVW ranging between 6.3 tons and 14.9
tons. The company first started exporting this vehicle to North America
in 2003. Then in October 2004, the company outsourced production of
the vehicle to TABC, Toyota's American component factory. The Company
also started assembling the model in Canada in April 2006 to increase
the overall production capacity and reduce distribution costs. A satellite
factory will be built in West Virginia, where assembly operations will
start in November 2007.
Hino will likely launch the Dutro, a cabover light-duty truck that is in increasing demand to transport goods in urban areas. The automaker started producing components for Toyota's new Tundra at its new factory in Arkansas in October 2006. It has been supplying components for the Tacoma as well.
| ■Hino's North American sales |
(units) |
| |
2001 |
2002 |
2003 |
2004 |
2005 |
2006 |
Jan.-Jun.
2006 |
Jan.-Jun.
2007 |
| US |
Class 4 |
309 |
319 |
326 |
296 |
278 |
335 |
191 |
123 |
| Class 5 |
326 |
320 |
377 |
401 |
553 |
258 |
153 |
87 |
| Class 6 |
669 |
830 |
1,012 |
1,356 |
2,906 |
4,542 |
2,286 |
2,027 |
| Class 7 |
196 |
226 |
264 |
334 |
553 |
1,068 |
445 |
597 |
| Total |
1,500 |
1,695 |
1,979 |
2,387 |
4,290 |
6,203 |
3,075 |
2,834 |
| Canada |
854 |
923 |
990 |
1,233 |
1,202 |
1,431 |
780 |
924 |
| North America |
2,354 |
2,618 |
2,969 |
3,620 |
5,492 |
7,634 |
3,855 |
3,758 |
| Source: Ward's Automotive Reports Jan. 22, 2007/Jul. 23, 2007 |
| Note: |
Class 6 will be the mainstay of Hino's
North American sales. The automaker is targeting a 10% market share
in the class in the mid- to long-term. The total demand for this
class of vehicle in FY2006 in the United States was 74,000, with
Hino holding a 7.2% market share. The automaker targets a 5% market
share in Class 7 by offering a better product range and providing
enhanced customer-centric sales activities, especially in the area
of specially equipped vehicles. The total demand for this class
of vehicle in FY2006 in the United States was 85,000, of which Hino
had a 1.2% market share. |
■Hino Motors: trucks exclusively sold in North America being produced at three plants
| |
Description |
| Oct. 2004 |
TABC, Toyota's component factory based in California, began producing trucks that are being sold exclusively in North America, based on an outsourcing agreement. |
| Apr. 2006 |
The assembly of trucks being sold exclusively in North America started at Hino's new factory in Ontario, Canada, which is capable of producing 2,000 a year. |
| Nov. 2007 |
A new factory, being built in West Virginia, USA, will begin assembling trucks in November 2007. The production capacity is 2,500 a year. |
■Component production for Toyota: producing components for the Tundra as well as the Tacoma
| |
Description |
| 2003 |
Hino Motors Manufacturing USA's headquarters plant in California began producing rear axles for Toyota's Tacoma, a pickup model. |
| Oct. 2006 |
Hino Motors Manufacturing USA began producing differential gears and rear axles for Toyota's Tundra, a pickup model, at its newly built factory in Arkansas that is capable of producing 300,000 sets a year. |
| Source: |
Hino's Business Report for Fiscal Year 2006, Hino press releases on Jul. 6, 2005/Mar. 6, 2006/Jun. 26, 2007, Nikkan Kogyo Shinbun Nov. 21, 2006 |
| Note: |
As part of its component business
supplying parts to Toyota in markets outside Japan, Hino has been
producing differential gears, rear axles, and frames for the IMV
in Thailand. The production capacity will increase from 300,000
to 360,000 sets a year within 2007. Hino's total supply of components
will expand to 830,000 sets in FY2007, which is the combined volume
produced in both the United States and Thailand. (The volume in
FY2006 was 570,000 parts). |
■Markets other than North America in which Hino operates: Hino enters both the Korean and Mexican markets; produces medium- and light-duty trucks in Columbia
In April 2007, Hino started selling medium-duty trucks in Korea using Scania's local network of dealers. Hino is said to be planning commercial operations with Scania under which the two automakers will supply each other products to be sold through their own respective network in other markets.
In Central and South America, Hino started selling the Dutro, a light-duty truck, in Mexico in August 2007. It will begin to produce medium- and light-duty trucks in Columbia in September 2008. The volume is expected to be around 3,500 a year.
In Australia, Hino launched the Dutro Hybrid in 2007 and plans to sell 100 in the first year. The automaker is looking at putting the model on the market in Thailand and Indonesia as well. CNG buses were launched in Pakistan, Indonesia, and Bangladesh. In China, Taiwan, Thailand, and South Africa, Hino implemented training courses targeted at not only drivers but also managers of fleet operators, designed to train them in the techniques of fuel-efficient driving.
■Hino Motors: sets policies to bolster sales in existing markets other than North America
| |
Description |
Australia
and Asia |
To maintain a high market
share and increase it and improve profitability in Thailand, where
the company has the largest market share in heavy- and medium-duty
trucks for four years running, Indonesia, where the company has
the largest market share of heavy- and medium-duty trucks and buses
for six years running, Australia, where the company has the largest
market share of medium-duty trucks for two straight years, and Pakistan,
where the company has the largest market share (46%) in heavy- and
medium-duty trucks and buses in 2006. |
| In April 2007, Hino began to sell the Ranger, a medium-duty truck, under its own brand name in Korea using Scania's local dealer network that consists of 22 dealers. The Ranger has a payload of between 4.5 tons and 5 tons. The company expects to sell 300 in the first year and 1,000 in the future. The demand for medium-duty trucks in Korea is roughly 10,000 a year. Hino has been selling Scania tractors through its network of dealers in Japan since 2003. Selling its trucks through Scania dealer network is a first for the company. |
| Hino launched the Dutro
Hybrid in Australia in 2007. This is the first hybrid truck for
Hino to sell overseas. The company expects to sell 100 the first
year. The automaker will develop other markets where it plans to
sell the model in the Asian countries such as Thailand. |
| Hino introduced CNG buses in Pakistan, Indonesia, and Bangladesh in 2007, with planned sales of over 100 a year in each market. The three countries' central and local governments recommend the model because it is environmentally friendly and helps them save foreign currency by reducing the volume of oil they need to import. |
Central and
South America |
To maintain a high market
share and increase its presence in Ecuador, where the company sold
2,880 trucks and buses in FY2006, gaining a 48.8% market share,
and in Guatemala, where the company sold 550 vehicles in FY2006,
gaining a 32.4% market share. |
| Hino established a truck production company in Columbia in August 2007, which will start producing medium- and light-duty trucks for Columbia and Ecuador in September 2008. The Columbian plant will produce 3,500 vehicles a year. The automaker sold roughly 3,900 vehicles in the two countries in 2006. Hino became the first Japanese automaker to produce trucks in South America. |
| Hino Motors Sales Mexico, established by Mitsui & Co. in Mexico, began to sell the light-duty Dutro in August 2007. Hino expects to sell 400 a year for the time being and plans to increase sales in 2011 when import duties will be abolished. |
| The Middle East |
In October 2006 Hino introduced trucks with GVW of around 6.5 tons, which are its mainstay models being sold in the Middle East. In November 2006, it also started selling large-size trailer dumps which can carry 100 tons. The company had already launched dump trucks with 40-ton payloads in 2004. |
| A training center will be built in Dubai, UAE in FY2007 to enhance the 3Ss. |
| Hino established a new distributor in Jordan in March 2006 in cooperation with the Toyota Group. In September 2006, it changed its distributor in Oman to a new one to bolster its sales network. |
Western Europe
(UK) |
Hino expanded its sales network to 16 dealers in the UK in FY2006 as part of its determined efforts to gain a foothold in the market. It had seven in FY2005. The automaker is planning to launch trucks with GVWs of 5.5 tons, 6.5 tons and 7.5tons. |
Sources: Hino press releases on Dec. 19, 2006/Apr. 25, 2007/Aug. 1, 2007/Aug. 3, 2007
■New markets for Hino: company will start production operations at a joint venture with Guangzhou Automobile in China; and develop a sales network that covers all of Western Europe
Hino is looking for new markets in which to expand its business operations. Candidate regions include BRICs, Western Europe, and Eastern Europe. In China, a joint venture the company established with Guangzhou Automobile in July 2007 will start producing heavy-duty trucks and buses in 2008 at the earliest. In Europe the automaker has been selling its trucks in Ireland, the UK, and Cyprus, namely countries that drive on the left side of the road. Hino is now considering establishing a sales network that covers the whole of Western Europe by developing truck models compatible for the region. In addition, the automaker is said to be looking at other nearby locations such as Russia and Central and Eastern Europe as new markets it can also develop.
■Hino Motors: producing heavy-duty trucks and buses in a joint venture with Guangzhou Automobile
| Hino is planning to produce heavy-duty trucks and buses in a joint venture with Guangzhou Automobile. An application to register the joint venture as Guangzhou Automobile Hino was accepted in July 2007. Production volume will be between 2,000 and 3,000 vehicles a year at the outset, eventually reaching 20,000. Construction at the plant will start in August 2007, with the first lot of trailer heads and double-decker buses coming off the line in September 2008. |
| It was said that approval of the joint venture was on condition that Shenyang Shenfei Hino Automobile be taken over and reorganized. Shenyang Shenfei Hino Automobile is a joint venture established in 2000 between Hino and Shenyang Aircraft Corporation to produce buses. |
Sources: Nihon Keizai Shinbun Aug. 9, 2007, Nikkan Jidosha Shinbun Aug. 10, 2007
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