L-R: Koji Sato, CEO, Toyota Motor Corporation; Satoshi Ogiso, CEO, Hino Motor Corporation; Karl Deppen, CEO, Mitsubishi Fuso & designated CEO of new holding company and Karin Radstrom, CEO, Daimler Truck.

In a landmark move for Japan’s commercial vehicle sector, Mitsubishi Fuso Truck and Bus Corporation and Hino Motors have signed definitive agreements to integrate their operations. The merger will take place under a new holding company set to be established by April 2026, with Tokyo as its headquarters.

The new combined entity will have over 40,000 employees with the scale, resources and technology leadership to disrupt the commercial vehicle landscape in the Asia-Pacific region and beyond. It will own 100 percent of Mitsubishi Fuso and Hino Motors.

The integration is the result of a collaboration between four major automotive players: Daimler Truck AG, Mitsubishi Fuso, Hino Motors and Toyota Motor Corporation. Both Daimler Truck and Toyota plan to acquire a 25 percent stake each in the newly listed holding company, which will in turn fully own Mitsubishi Fuso and Hino. The new entity is expected to be listed on the Prime Market of the Tokyo Stock Exchange, with Karl Deppen, current CEO of Mitsubishi Fuso, appointed as CEO of the holding company.

The partnership is designed to bring Mitsubishi Fuso and Hino together on an equal footing, with joint efforts across commercial vehicle development, procurement and production. It aims to enhance operational efficiency, improve global competitiveness and bolster the automotive industry across Japan and Asia.

The alliance underscores the companies’ shared vision of supporting society through sustainable mobility. A key focus of the integration will be addressing the urgent challenges facing the commercial vehicle industry, including decarbonisation, logistics efficiency and the development of CASE technologies (Connected, Autonomous, Shared and Electric mobility) alongside the adoption of hydrogen solutions.

Karin Radstrom, CEO, Daimler Truck, said, “The now decided integration of Mitsubishi Fuso and Hino Motors is truly historic. We are bringing together two strong partners to form an even stronger company and to successfully shape the decarbonisation of transportation. Together, Mitsubishi Fuso and Hino Motors have great potential to leverage scale – and scale is key to win in the technological transformation of our industry. Karl Deppen is an experienced and strong leader who comprehends the whole value chain of our business and I’m therefore convinced that he can bring the new company to the next level.”

Koji Sato, CEO, Toyota Motor Corporation, said, “We believe that the future is for us to build together. Today’s final agreement is not the goal but the starting line. Our four companies, aiming to achieve a sustainable mobility society, will continue to create the future of commercial vehicles together.”

Karl Deppen, CEO, Mitsubishi Fuso and designated CEO of new holding company, said, “Today is a great day for all our stakeholders. We are shaping the industry by bundling our strengths. With a strong new company we combine our two trusted brands, our resources, competencies and expertise to even better support our customers in their transportation needs in the future. I feel honoured and excited to be the designated leader of the new company and am grateful for the trust and encouragement from Toyota and Daimler Truck to make it happen.”

Satoshi Ogiso, CEO, Hino, said, “Cooperation among these 4 companies is truly ‘once-in-a-lifetime opportunity’. In addition to operational synergy, we can expect immeasurable synergy affection from synthesising different culture and climate of us. Under commonly aimed aspiration, we are confident with building strong and resilient team to empathising with each other and contributing to society. As a new commercial vehicle company rooted in Japan, we collaboratively create ever better future.”

Larsen & Toubro’s Construction & Mining Machinery business has entered into a partnership with FAYAT Road Equipment Division India to market BOMAG road milling machines, soil stabilisers and cement spreaders in India. The agreement encompasses marketing, sales, aftersales support and the supply of spare parts.

FAYAT is a France-based construction group and road equipment supplier, while Germany-headquartered BOMAG operates within FAYAT’s Road Equipment Division. The equipment range will join L&T’s current road machinery portfolio, expanding the company’s coverage across road construction, maintenance and infrastructure development applications.

Anil V Parab, Senior Executive Vice-President and Whole-time Director - Manufacturing, Larsen & Toubro, said, “Our Construction & Mining Machinery business has a long history of introducing advanced equipment technologies in India. In fact, we are the pioneers to introduce hydraulic excavators in India. The addition of BOMAG’s specialised road construction equipment further strengthens this legacy.”

“L&T’s nationwide service network, supported by its central warehouse in Nagpur, will help ensure prompt technical support and dependable after-sales service throughout the equipment lifecycle. Together, L&T and FAYAT aim to enhance customer productivity, improve project efficiency and build a strong platform for long-term growth in the Indian market,” added Parab.

Abhijit Som, MD, FRED India, said, “India is a key strategic growth market for the FAYAT Group. As the country advances towards realising its vision of Viksit Bharat by 2047, continued investment in infrastructure will drive demand for advanced, efficient and sustainable road construction solutions. With a legacy spanning several decades and a presence in more than 170 countries, FAYAT is well-positioned to bring its global expertise and technologies to support this growth. The introduction of BOMAG’s specialised road construction technologies in India, combined with L&T’s extensive market reach, deep customer relationships and service infrastructure, creates a compelling synergy. The partnership will enable customers to access advanced and reliable equipment solutions backed by strong local support.”

L&T will manage nationwide product support through its distribution network and central parts warehouse located in Nagpur.

Bombay Logistics has flagged off a fleet of liquefied natural gas heavy-duty trucks manufactured by Blue Energy Motors for commercial operations in Karnataka. The vehicles will operate in the Toranagallu region to support industrial freight transport for JSW Steel.

The LNG trucks are said to offer up to 20 percent higher fuel efficiency compared to conventional fuel equivalents, reducing carbon intensity across long-haul freight operations.

Thimmaraj Kakarla, Managing Partner, Bombay Logistics, said, “For us, the move to LNG is about finding a practical solution that works on the road and makes commercial sense. The performance and fuel efficiency of the Blue Energy Motors trucks were important considerations, while the Blue Energy Motors team’s support throughout the deployment, from vehicle handover and route planning to on-ground assistance, made the transition seamless. As these trucks begin operations for JSW Steel, we see this as a meaningful step towards improving operating efficiency while reducing the carbon footprint of our freight movement.”

Anand Mimani, CEO of EV and New Energy, Blue Energy Motors, said, “We are pleased to support Bombay Logistics in deploying our LNG trucks for demanding industrial operations. For us, the priority is simple: deliver the performance and reliability the customer needs while making the shift to cleaner freight practical.”

At present, Blue Energy Motors maintains an operational fleet of over 1,400 alternative-fuel trucks across Indian freight corridors. The company says these vehicles have recorded over 100 million kilometres and reduced carbon dioxide emissions by more than 30,000 tonnes.

Ashok Leyland’s battery pack manufacturing plans are designed to boost vehicle integration and open new revenue streams, not just cut costs or meet local-sourcing rules, said Chief Executive Officer Shenu Agarwal during the company’s Q1 FY27 financial results announcement.

The Hinduja Group-controlled truckmaker is building a battery pack plant in Tamil Nadu, with production slated to start in 2027. The facility, located in the SIPCOT Pillaipakkam Industrial Park near Chennai, forms the first phase of a broader INR 75 billion commitment by the group.

Speaking to Motoring Trends on the same, Agarwal's said, “Don't look at the battery pack business just from a cost perspective or localisation perspective. The company will meet local-content requirements to the extent that we can make it more efficient.”

He added that the company is designing its own battery packs and battery management systems in-house, which will let the company integrate it better into its vehicles and create a total cost of ownership advantage for the customer.

The strategy also extends beyond Ashok Leyland's own line-up. “We are also evaluating how to supply the solutions to other automotive players,” Agarwal said, while pointing to rising demand for battery energy storage systems as a separate growth avenue.

“This battery pack business has multiple dimensions,” he noted, adding that the initiative is meant to enhance value for truck and bus customers rather than serve as a narrow cost play.

Earnings call

Ashok Leyland posted a record first quarter with strong domestic commercial-vehicle demand helping the automaker withstand disruptions in international markets and broader geo-political uncertainty.

The company achieved its highest-ever first-quarter revenue, profit before tax and net profit, while its cash position improved by INR 14.31 billion from a year earlier, net of dividend, capital expenditure and investments in group companies, Executive Chairman Dheeraj Hinduja said.

“The business environment tested the robustness of our processes and resilience of our teams and partners. Ashok Leyland has come out stronger, achieving new peaks,” Hinduja said.

Domestic commercial-vehicle industry volumes grew in double digits during the quarter with Ashok Leyland's medium and heavy commercial vehicle truck volumes rising 15 percent from a year earlier.

Domestic light commercial vehicle volumes reached a record 18,874 units, while the company’s overall commercial-vehicle volumes increased 10 percent year-on-year, Hinduja said.

The company also maintained its 14th consecutive quarter of double-digit EBITDA margin underscoring its focus on profitable growth, he said.

Non-commercial vehicle businesses including aftermarket, engines and defence also reported healthy performance, Hinduja said. The company continued to invest in products and manufacturing capabilities including the launch of multi-axle trucks equipped with air suspension, which offers higher payload and lower TCO.

Ashok Leyland also launched a 12-meter fuel-cell bus, which Hinduja described as an industry first.

Its electric mobility subsidiary Switch India recently secured an order for 650 electric buses, while the group’s financing businesses, Hinduja Leyland Finance and Hinduja Finance, reported assets-under-management growth of 20 percent and 13 percent, respectively.

The company remains cautious about global uncertainties but is confident of navigating them on the back of the stronger foundation built in recent years, Hinduja said.

“It was satisfying to see the company deliver in the face of challenges presented by global uncertainties. Our performance demonstrated that the business model we have developed can absorb shocks,” he said.

“We remain cautious of global uncertainties but we are confident of navigating these based on the strong foundation we have built over the last few years,” Hinduja added.

The comments come as Ashok Leyland's international commercial-vehicle volumes fell to 2,461 units in the first quarter from 3,011 a year earlier, primarily because of the crisis in West Asia. Growth in South Asia and Africa partly offset the decline with the company seeing stronger momentum from June.

Hinduja said the company’s domestic performance demonstrates the strength of India's commercial-vehicle market and gives it confidence in its ability to sustain growth despite external volatility.

Ashok Leyland’s battery strategy comes as the company strengthens its portfolio amid robust domestic demand and global uncertainty. By developing battery packs and management systems in-house, the automaker aims to capture more value across the electric-vehicle ecosystem, while exploring external customers and energy-storage applications as additional growth opportunities beyond its core vehicle business.

Mahindra Truck and Bus, a division of the Mahindra Group, has introduced the Mahindra Blazo i-TRK heavy commercial vehicle range in India.

The vehicle range features Mahindra's 320hp mPOWER engine and the iMAXX 2.0 fleet telematics platform.

The company says the new Blazo i-TRK delivers up to 10 percent higher fuel efficiency compared to previous models. Mahindra has also introduced a 48-hour uptime guarantee for the vehicle range, offering a compensation scheme of INR 10,000 per day in cases where service timelines are not met.

The telematics platform connects vehicle systems to provide fleet operators with operational data, remote monitoring capabilities and maintenance management tools. The integration of connected vehicle technology is intended to support freight movement and fleet productivity across Indian transport routes.