Hino Motors

Basic Information

Stock Code
7205
Industry
Transportation Equipment
Category Detail
Automobiles
Prefecture
Tokyo
Establishment Year
May 1942
Listing Year
May 1949
Official Website
https://www.hino.co.jp/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
Nissan, Isuzu, Mazda

Overview

Hino Motors is a leading Japanese commercial vehicle manufacturer established in 1942 and a member of the Toyota Group, boasting the top domestic market share in the truck and bus sectors.

Current Situation

Hino Motors is a major commercial vehicle manufacturer that recorded consolidated sales of approximately 1.46 trillion yen for the fiscal year ended March 2022. It has held the top sales volume in large and medium trucks in Japan for 48 consecutive years, maintaining high customer satisfaction. It has also secured high market shares in 93 countries including Taiwan, Thailand, and Indonesia, with overseas sales accounting for about 70%. Technologically, it has advanced innovations such as developing the world's first commercial hybrid truck and partnering with Volkswagen in the electric truck field. On the other hand, an emissions cheating scandal was revealed in March 2022, making thorough compliance and trust recovery key challenges. In 2023, it plans to strengthen collaboration with Mitsubishi Fuso Truck and Bus through business integration. Aiming for sustainable growth, it is focusing on relocating new factories to Koga and developing environmental technologies.

Trivia

Interesting Facts

  • 48 consecutive years as No. 1 in domestic large truck sales volume
  • World's first commercial hybrid truck to exceed 10,000 units in global sales
  • Established in 1942 by spinning off from an affiliate of Tokyo Gas Electric Industry
  • Engaged in comprehensive electric truck partnership with Volkswagen Traton
  • One of the core companies in the Toyota Group, with Toyota Motor as parent
  • Manufactures Type 73 Medium Trucks and High Mobility Vehicles for Japan Ground Self-Defense Force
  • Top Japanese company that faced legal penalties due to 2022 emissions cheating scandal
  • Operates Hino Industrial High School, focusing on skilled worker development
  • Sales network in 93 countries worldwide, actively promoting international expansion
  • Continuously participates in Dakar Rally with Hino Ranger, achieving numerous strong results
  • Focuses on young engineer development and active global technology exchange
  • Owns multiple subsidiaries including Trantex and Takebe Iron Works
  • Jointly develops bus business via Isuzu Motors and J-Bus
  • Previously produced passenger cars and had technology partnership with Renault
  • Forms extensive business network through collaboration with diverse industries

Hidden Connections

  • As a subsidiary of Toyota Motor, strengthens brand and supports Toyota Group's management foundation
  • Competitor to Isuzu Motors but advancing collaboration through business integration in bus operations
  • Technology exchange with Volkswagen on European electric truck development
  • Strong ties to Japan's defense equipment industry, manufacturing vehicles for Japan Ground Self-Defense Force
  • Operates Hino Auto Plaza to showcase company history and technological heritage
  • Collaborates with local educational institutions to operate vocational schools for engineer training
  • Exhibits synergies in procurement through joint venture with Traton
  • Previously handled contract production of Toyota brand passenger cars and small commercial vehicles

Future Outlook

Growth Drivers

  • Increasing demand for low-emission vehicles due to global environmental regulation strengthening
  • Development of smart logistics solutions utilizing CASE technologies
  • Overseas sales expansion centered on Asian markets
  • Competitiveness enhancement through expanded EV and hybrid vehicle lineup
  • Development and early application of autonomous driving technology to commercial vehicles
  • Growth and diversification of mobility services business
  • Synergy creation with Toyota Group
  • Fuel efficiency and safety improvements through technological innovation
  • Deepening of sustainable manufacturing systems and environmental responses
  • Scale expansion through business integrations amid industry restructuring

Strategic Goals

  • Expansion of commercial vehicle market share domestically and internationally
  • 80% or more ratio of environmentally responsive vehicles centered on electrification and hybrids
  • Complete recovery of corporate trust by overcoming emissions cheating issue
  • Strengthening of local production systems for emerging markets
  • Achieve over 100 billion yen in mobility services business sales
  • Acceleration of global expansion through business integrations
  • Lead commercialization of advanced automotive technologies
  • Strengthening of engineer training and digital talent acquisition
  • Enhanced acquisition of sustainability certifications as a manufacturer
  • 100% achievement of energy-saving and environmental impact reduction in production factories

Business Segments

Commercial Vehicle Manufacturing and Sales

Overview
Handles manufacturing and sales of commercial vehicles supporting logistics and transportation.
Competitiveness
High technological strength and Toyota Group reliability.
Customers
  • Logistics Companies
  • Construction Companies
  • Local Governments
  • Leasing Companies
  • Manufacturers
  • Ministry of Defense
Products
  • Heavy-duty Trucks
  • Medium-duty Trucks
  • Light-duty Trucks
  • Heavy- and Medium-duty Buses
  • Military Vehicles
  • Industrial Diesel Engines

OEM and Contract Production

Overview
Performs OEM production for parent company Toyota and partner companies.
Competitiveness
High manufacturing quality and flexible production system.
Customers
  • Toyota Motor
  • Isuzu Motors
  • Daihatsu Motor
Products
  • Small Passenger Cars
  • Pickup Trucks
  • Light Vans

Engine Supply and Technology Provision

Overview
Supplies and develops advanced engines and environmental technologies.
Competitiveness
Proprietary environmental performance technology and track record.
Customers
  • Other Automakers
  • Industrial Equipment Manufacturers
Products
  • Diesel Engines
  • Hybrid Technology
  • Electric Truck Systems

Mobility Services

Overview
Provides advanced mobility services.
Competitiveness
Comprehensive strength through group collaboration.
Customers
  • General Corporations
  • Local Governments
  • Transport Operators
Products
  • MaaS Platform
  • ITS Technology
  • Vehicle Operation Management Services

Competitive Advantage

Strengths

  • Toyota Group's technological capabilities and management resources
  • Overwhelming share in domestic commercial vehicle sales
  • Extensive sales network through multinational expansion
  • Environmental responsiveness through abundant hybrid technology
  • Long-term trust relationships with customers
  • High manufacturing quality and reliability
  • Strong engine technology
  • Rich vehicle lineup
  • Presence in numerous overseas markets
  • Parent company Toyota's brand power
  • Active technological partnerships and business reorganizations
  • Advanced commercial vehicle development capabilities
  • Track record in military vehicle deliveries
  • Expansion of sustainability initiatives
  • Customer touchpoints through numerous affiliated sales companies

Competitive Advantages

  • Stable product development and supply system due to strong capital and technological ties with Toyota.
  • High brand superiority from continuous No. 1 market share in domestic large and medium truck markets.
  • Successful global expansion with high market shares centered on ASEAN overseas.
  • Strength in advanced hybrid and electric truck technologies aimed at reducing environmental impact.
  • Strengthened bus division lineup and competitiveness through business integration with J-Bus.
  • Technological superiority in advanced engine manufacturing, including supply to other companies.
  • Comprehensive system to meet diverse customer needs through varied product lineup.
  • Focus on domestic and international regulatory compliance to pursue trust recovery and sustainability.
  • Positioned in global top ranks for truck and bus production, leveraging economies of scale.
  • Regional sales network built with many dealer groups under its umbrella.
  • Growth potential through entry into mobility services and new EV-related businesses.
  • Solid track record and stable orders in special fields like military vehicles.
  • Success in technology sharing and cost rationalization through strategic partnerships.
  • Effective coverage of different customer segments via multi-brand strategy.
  • Organizational structure maintaining high safety and customer service quality.

Threats

  • Loss of trust and intensified legal regulations due to emissions cheating scandal.
  • Impact of global material price fluctuations and exchange rate risks.
  • Intensifying competition with local manufacturers in overseas markets.
  • Challenges in differentiation from competitors leading in EV and CASE technologies.
  • Business impacts from international situations and trade policy uncertainties.
  • Increasing compliance costs for environmental regulations and delay risks.
  • Production and sales impacts from difficulties adapting to new vehicle inspection standards.
  • Challenges in organizational and cultural integration from business mergers.
  • Decline in operational efficiency due to delays in digitalization.
  • Political and economic instability in emerging markets.
  • Talent shortages and technology succession issues.
  • Cost increases and demand reduction from rising fuel prices.

Innovations

2024: Full Production Transfer to Koga Factory Completed

Overview
Complete transfer of production functions from Hino head office factory to new Koga City, Ibaraki Prefecture factory.
Impact
Achieved cost reductions through improved production efficiency and equipment modernization.

2023: Launch of AI-Equipped Heavy-duty Hybrid Truck

Overview
Launched new-generation heavy-duty hybrid truck 'Profia Hybrid' incorporating AI technology.
Impact
Achieved over 10% improvement in fuel efficiency and reduced environmental impact.

2022: Expansion of Electric Truck Partnership with Volkswagen Traton

Overview
Strengthened commercial electric truck manufacturing and sales by linking technologies and procurement.
Impact
Established foundation for future EV product expansion.

2022: Investigation and Enhanced Recurrence Prevention Measures for Emissions Cheating Issue

Overview
Conducted investigation and overhauled internal management system for fundamental compliance improvements.
Impact
Contributed to trust recovery and reduction of legal risks.

2021: Commercial EV Development Partnership Agreement with BYD

Overview
Partnered with China's BYD for commercial EV development and started joint new product development.
Impact
Promoted entry into commercial EV field and technology acquisition.

2024: Development of Capacitor-Equipped Racing Hybrid

Overview
Developed capacitor-type hybrid with high-speed charge/discharge for Dakar Rally entry vehicles.
Impact
Contributed to race performance improvement and technology accumulation.

2023: Expansion of Medium-duty Truck OEM for North America

Overview
Began expanded supply of small trucks for North American market with Isuzu Motors.
Impact
Achieved enhanced market competitiveness and sales channel expansion.

2022: Trial Deployment of New Fuel Cell Buses

Overview
Conducted trial runs of latest fuel cell buses jointly with Tokyo Metropolitan Bureau of Transportation and others.
Impact
Advanced development of environmentally friendly transportation technologies.

2023: Introduction of Digital Vehicle Management System

Overview
Deployed advanced IT system for managing vehicle operation status and maintenance.
Impact
Contributed to improved customer service and operational efficiency.

2024: Initiation of Recycled Material Use for Environmental Impact Reduction

Overview
Strengthened sustainability by using recycled plastics etc. in vehicle bodies and parts.
Impact
Contributed to CO2 reduction and circular society development.

Sustainability

  • Development and promotion of emissions reduction technologies
  • Expansion of electrified vehicle lineup
  • Energy-saving and resource-saving activities in production processes
  • Introduction of renewable energy in factories
  • Cooperation with local communities on environmental conservation