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.”

Daimler India Commercial Vehicles (DICV), a subsidiary of Daimler Truck, has inaugurated a new authorised BharatBenz dealership, Agile Trucking, in Raniganj, West Bengal. The facility is intended to support industrial and infrastructure corridors in the eastern region of India.

Located on NH2, the dealership is situated near the industrial hubs of Durgapur and Asansol. The site provides sales, service, and spares (3S) support to fleet operators, railway sidings and construction logistics providers.

The dealership is spread across 85,000 sqft and operates 24 hours a day to assist with vehicle uptime. It features 12 service bays and 4 accident repair bays. It can service over 500 vehicles every month and is also equipped with four Mobile Reach Vans (MRVs) for roadside assistance. The facility employees 65 personnel trained for technical and sales support.

The inauguration brings the total number of BharatBenz touchpoints to 418. DICV plans to add 32 more locations in 2026 to reach a total of 450. In West Bengal specifically, the company operates 11 workshops and intends to add five more during 2026. Additionally, a new Regional Training Centre (RTC) is scheduled to open in Kolkata by the fourth quarter of 2026 to train engineers for the dealership network.

Rajiv Chaturvedi, President & Chief Business Officer, Daimler India Commercial Vehicles, said, “West Bengal continues to be a key market for BharatBenz, driven by infrastructure development, industrial activity, and freight movement along major national highways. The inauguration of the Agile Trucking dealership in Raniganj further strengthens BharatBenz’s footprint in southern West Bengal. West Burdwan is a strategically important district with strong industrial and infrastructure activity. With this modern 3S facility, we are reinforcing our commitment to delivering reliable products, faster service turnaround, and a superior ownership experience for our customers. Currently, 418 BharatBenz touch points are there with this facility and in 2026 we will add total 32 more touch points to improve reach to 450 touch points in total. We have 11 Service workshops in West Bengal and we will add 5 more touchpoints in 2026. We are also going to start new RTC in Kolkata by Q4’2026 to provide trained engineers to our dealerships which in turn will improve customer service experience.”

Vijayakumar K, CEO, Agile Trucking, added, “The launch of this new BharatBenz facility in Raniganj reflects our long-term commitment to the region. With advanced infrastructure, a skilled team, and round-the-clock operations, we aim to support our customers with dependable service and help them achieve higher vehicle uptime and operational efficiency.”

Ashok Leyland, the flagship company of the Hinduja Group, has announced a network expansion for its Light Commercial Vehicle (LCV) business in Western India. The company plans to add 30 touchpoints to its existing 150 in the region within one year.

The move aims to support demand for LCVs driven by infrastructure projects and economic growth in Maharashtra and the wider Western region.

At present, it operates with 29 dealer partners, 130 service workshops, and over 350 trained technicians in Western India. This infrastructure provides a service point every 35 kilometres. Following the expansion, Ashok Leyland intends to reduce this distance to 25 kilometres.

Ashok Leyland is focusing on its LCV portfolio, including models such as the ‘Bada Dost’ and ‘Dost’, to increase its market presence. The strategy involves delivering transport solutions for various industries while leveraging technological innovation.

Viplav Shah, Head of LCV Business at Ashok Leyland, said, "The expansion of the LCV networking in Maharashtra and the entire Western region will be a game changer for us. Along with best-in-class mileage, payload, loading area, comfort and reliability that our LCV range offers, now we are taking a big step in multiplying our service reach. We remain committed to strengthening our presence in the Western region, which is a key market for us.”

Following the success of the XF, XG and XG+ in 2022 and the XD in 2023, DAF XD and XF Electric have bagged the International Truck of the Year 2026 award from a 24-member jury of the International Truck of the Year (IToY) consortium that is made of senior commercial vehicle journalists from the world over.

The award trophy was presented to Harald Seidel, President, DAF Trucks, during the International Awards Gala Evening at the Solutrans trade fair in Lyon, France, recently. With 92 points, the Dutch manufacturer’s heavy-duty electric series finished ahead of its competitors in the final count. The diesel-powered MAN D30 PowerLion provided strong competition, while the fully electric SANY e435 marked the first time a Chinese truck has reached the shortlist for what is considered as the most prestigious commercial vehicle award.

In line with the rules of the IToY, the title is awarded annually to the vehicle introduced in the previous 12 months that has made the greatest contribution to road transport efficiency. The assessment covers a range of criteria, including technological innovation, comfort, safety, driveability, energy efficiency, environmental performance and total cost of ownership.

This is the third consecutive year that an electric truck has taken the title. Of the five vehicles shortlisted for 2026, three were battery-electric models, highlighting that the energy transition remains at the forefront of the truck industry, even as the internal combustion engine continues to evolve.

During extensive test drives, the jury members praised the XD and XF Electric for the perfection of their drivelines and the almost imperceptible gear changes. Their range also benefits from the nine percent aerodynamic improvement achieved across DAF’s latest generation.

The modular vehicle concept, offering a wide choice of battery and axle configurations, was also commended by the jury members for providing operators with exceptional flexibility.

Florian Engel, Chairman, IToY, averred, “With the new XD and XF Electric, DAF Trucks demonstrates that the combination of a central electric motor and a traditional rear axle can be just as energy-efficient as a driveline with an e-axle. Moreover, this DAF configuration provides perfect weight distribution, enabling virtually all use cases to be covered by a single technical platform.”

Ashok Leyland is riding multiple tailwinds at once viz-a-viz a sharp uptick in exports led by the GCC, a strong domestic CV cycle driven by freight demand and fleet replacement and an expanding electric bus strategy that now includes a potential manufacturing footprint in Indonesia.

Speaking on the sidelines of the company’s Q3FY26 results announcement, Executive Chairman Dheeraj Hinduja and Chief Executive Officer Shenu Agarwal detailed how the company’s international operations, EV roadmap, new product launches and capex programme are aligning to position the CV maker for sustained growth into FY27.

Hinduja highlighted that exports have been extremely good this year with particularly strong traction from Saudi Arabia and the UAE.

“The Saudi market and the UAE market continue to be very strong. We have developed products that are very suitable for these economies and our Ras Al Khaimah plant is working nearly at full capacity,” he said.

The GCC markets are now a key growth engine within Ashok Leyland’s international portfolio and overall overseas operations are expected to close the year on a robust note. The near-full utilisation at the facility underlines not only demand strength but also the company’s increasing localisation and relevance in these markets.

Furthermore, a recent MOU with PT Pindad in Indonesia marks Ashok Leyland’s intent to deepen its presence in Southeast Asia. Hinduja noted that the agreement was signed only last week and is aimed at building a much larger footprint in a sizeable market.

“This opportunity allows us to not only focus on electric buses but also on defence products,” he said, indicating that the partnership has a wider scope than just EV mobility.

While still in early stages, the understanding is that the collaboration could evolve into local manufacturing of vehicles in Indonesia for the domestic market, strengthening Ashok Leyland’s ASEAN presence while aligning with local industrial priorities. “We see good opportunities going forward in the Indonesian market,” Hinduja added.

Promising Q1FY27

On the near-term outlook, Hinduja said the momentum seen from Q1 through Q3 has continued into Q4. “The current quarter is looking very good. We have seen steady growth from Q1, Q2 and Q3, and this current quarter is also looking very strong,” he said, citing CRISIL estimates that suggest the company could close the year with overall growth of 10–12 percent.

Looking ahead, while Q1 is traditionally softer for the industry, the company is seeing encouraging signs. “Generally, Q1 is slightly slower than the rest of the year but at the moment the indications of Q1 are also very good,” he noted.

This optimism is underpinned by what the company believes is not a temporary spike but the start of a sustained replacement-led demand cycle. Agarwal pointed to January’s industry data, where the MHCV segment grew around 27 percent and LCVs over 20 percent as evidence of structural demand.

“We do believe that this is not a short-term blip because of GST. This is a result of overall growth in the consumption economy, which is leading to higher freight demand and higher freight rates,” he said. India’s truck fleet age is currently at an all-time high and the improved freight environment appears to have triggered a long-awaited replacement cycle.

“If the industry was waiting for some kind of a trigger to start this new replacement cycle, we believe that has now happened, and therefore it will go for a longer run,” Agarwal said. A major part of Ashok Leyland’s MHCV strategy lies in the launch of Hippo and Taurus, developed over the past couple of years.

“These products truly represent best-in-class performance and reliability,” Agarwal said. Both trucks deliver peak torque of around 1,600 Nm, among the best in the category and use upgraded driveline aggregates to improve reliability in tough applications such as tippers.

On the tractor side, the focus is on improving turnaround time for customers through higher power and heavy-duty aggregates. “The whole range will be launched between now and April and thereafter we will use the full potential of these products,” he added.

EV demand rising

Despite reports of a slowdown in staff and school bus segments, Ashok Leyland says its order book remains strong across both conventional and electric buses. “Our bus order book is very healthy and very strong at the moment,” Hinduja said.

He noted that the new Lucknow greenfield plant, completed in a record 14 months, has come at the right time to support increased bus demand. The plant is primarily focused on EVs, with phase one capacity of 2,500 units, scalable to 5,000 units.

Agarwal attributed recent industry blips in bus growth to timing issues in STU orders rather than any fundamental demand weakness. “The sentiment is very, very positive even in the staff and school sectors,” he said. Agarwal emphasised that electrification will not be uniform across segments.

“Buses are seeing a huge spike in government purchases. We are very, very optimistic about the electric bus business,” he said. Switch, the company’s EV arm, is fully ready with products for India and overseas markets. A manufacturing base for EV buses is also being set up at the RAK plant, expected to be operational in about 12 months.

Electrification is also expected to gain traction in the 2–4 tonne and intermediate CV categories, where Ashok Leyland was among the first to launch electric offerings. While Ashok Leyland did not directly win tenders in the last 10,000-bus PM e-Bus Sewa round, Switch secured significant orders through an infrastructure partner. Both entities plan to participate in upcoming tenders.

The government’s plan to induct over 50,000 electric buses into STU fleets over the next four to five years is seen as a major opportunity. Switch has already exported EV buses to Mauritius and received an order for 45 buses from Bhutan, underlining its growing international footprint.

Market segments

The company acknowledged some commodity cost pressure in recent months, driven not by steel but by spikes in certain precious metals. This has pushed up Q3 material costs sequentially.

Hinduja expects this pressure to ease within three to four months. Meanwhile, the company is doubling down on efficiency, waste reduction and cost control. Ashok Leyland will close the year with capex of around INR 10–11 billion and plans to invest about INR 10 billion annually over the next two years towards its Centre of Excellence and factory projects.

Agarwal said the company has also consciously grown non-domestic CV businesses including industrial engines, power solutions, defence and spares to reduce dependence on domestic MHCV volumes. “This reduces our break-even point from MHCV domestic sales and gives a lot of strength to the company for future growth,” he said.

Despite being a late entrant in LCVs, Ashok Leyland now holds around 12 percent market share and insists it will not chase growth through discounting. “Our industry is basically TCO-focused. If the customer sees extra value, there is no hesitation in paying more,” Agarwal said, pointing to digitisation, AI-led service initiatives, reliability and turnaround time as key differentiators.

For Ashok Leyland, the strategy is clear with differentiated products, strong service, rising exports, EV readiness and a favourable domestic cycle, all converging as it prepares for the next phase of commercial vehicle growth.