Isuzu and Hino shift core functions to Thailand and Indonesia

Isuzu targets one million units by 2015 through expanded pickup sales

2012/10/25

Summary
Isuzu has mid-term plan to establish Global Three Core Business Organization
Isuzu's performance target is to achieve sales of 1 million units by 2015
Isuzu's overseas activities to increase production capacity for pickup trucks in Thailand; to begin development and production of heavy-duty trucks in China
Hino's mid-term plan is to transfer its core operations to Thailand and Indonesia
Hino to increase production capacity in Thailand and Indonesia; Hino plant to be closed and transferred to Koga, Japan
Hino's performance target: to achieve sales volume of 196K vehicles with margin of 5% in FY2014

Summary

This report will outline Isuzu's and Hino Motors' (Hino) business strategies.

Both companies are planning to transfer their core business function from Japan to Thailand and Indonesia due to shrinking commercial vehicle (CV) markets in developed countries including Japan, increasing demands in emerging markets, diversities between needs in developed and emerging countries, persistent strong yen, and the rise of Chinese and Korean manufacturers.

Isuzu has already set up a complete business structure for Light Commercial Vehicles (LCVs) such as pickup trucks, from development, production and sales to export in Thailand. Hino has placed Thailand as its hub for medium duty trucks in the ASEAN regions and plans to start production of mid-sized engines.

Isuzu will center its development and production for CVs for emerging countries in Indonesia. Hino will also base its small trucks for emerging countries in Indonesia and will produce small engines starting in the second half of the FY2012.

With these enhancements to emerging market business under way, Isuzu has set a target for sales volume of one million units and for sales revenue of 130 billion JPY for FY2015. Hino has set a target for sales volume of 196K units and for sales revenue of 75 billion JPY for FY2014.

Global CV market
(GVW basis, source: Hino)

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