Hino hedges hybrid bet ahead of merger

HINO Australia has confirmed it will be “business as usual” following its merger with Fuso in April next year, as well as outlining that it views hybrid as the dominant lower-emission solution for “the next decade”.

Speaking with GoAuto at the Darwin Supercars round, Hino Australia president and chief executive Richard Emery dispelled any concerns around the brand’s future autonomy, before diving into a rundown of its future product focus.

“The announcement was without surprise, and it was largely in line with our expectations after the initial announcement over a year-and-a-half ago,” said Mr Emery.

“As an important market for Hino, we have been supporting HML (Hino Motors Limited) in that planning and that preparation.

“Bottom line is, we’re excited about the opportunity the integration will bring for Hino, specifically in the Australian market.”

While it is unclear as to what the merger will look like from a product perspective, Mr Emery confirmed that the arrangement will greatly benefit Hino and the company’s Australian arm will remain largely unchanged.

“This integration positions Hino amongst both the Toyota and Daimler Truck ecosystems, which is surely the most potent environment possible within the global auto industry for us to take advantage of – it can only mean better outcomes for Hino in Australia,” he said.

“On a day-to-day view, my reporting line, and our Hino business in Australia, and how we interact with HML, will be unchanged – it will be business as usual.

“Vehicles will continue to be sold under separate Fuso and Hino brands, as they are today, and both will continue to be imported separately into Australia.”

In reassuring news for dealers, Mr Emery confirmed that the merger will not affect existing agreements.

“Our dealer contracts and supplier arrangements will remain unaffected by the transaction,” he said.

Mr Emery went on to outline the manufacturer’s product plans in the short- to medium-term, as it grapples with production gaps for 300 and 500 Series as the models transition to Euro 6 – a requirement for all new trucks from November this year – resulting from the knock-on effects of an emissions scandal in 2022.

“We’ve been the number two for close to 24 years, despite running that race over the last couple of years with a broken leg due to our resource and supply situation,” he said.

“In that vein, we do have opportunity to increase our volume in order to extract the best value and best opportunity out of each of the models that we offer.”

Despite the looming product gaps in Hino’s light- and medium-duty arsenals, the company expects to retain second spot on the sales ladder for 2025.

“We expect to deliver just over 5000 units in 2025, which is very similar to last year,” Mr Emery said.

Discussing Hino’s product mix into the future, Mr Emery points to the 300 Series Hybrid Electric – which is already Euro 6 compliant – as a dominant lower-emission solution.

“We believe Hybrid Electric will remain the only high-volume, lower-emission truck in Australia over the next decade, and Hino is currently the only manufacturer to offer one,” Mr Emery said.

“It could be argued…we dominate the segment (electrified trucks) and provide the majority of volume.”

The Hino Australia team believes the hybrid offering achieves a “sweet spot”, offering reduced emissions without the range and payload drops associated with dedicated battery-electric options – at least until the technology progresses.

“The balance between cost, range, payload, maintenance and resale are all critical measures when determining which technology works for any application – increasingly, a Hybrid Electric hits that sweet spot while also reducing emissions,” Mr Emery said. 

To prove the 300 Series Hybrid’s merits, the company recently worked alongside Supercars great Neil Compton to undertake a transport version of the Bathurst 1000 – which can be watched here.

“Our recent fuel efficiency test around the iconic Mt Panorama circuit and surrounding streets of Bathurst replicated the conditions of a local delivery operation – almost 300 kilometres of testing showed fuel savings of up to 24 per cent in Wide Cab variants and 22 per cent in Standard Cab, which reinforces our customers’ expectations,” Mr Emery said.

Looking beyond its hybrid models, Hino Australia is currently undertaking customer trials with the Japan-only light-duty Dutro Z-EV to determine its suitability for the Australian market, but did not offer a timeline for its local launch.

“This will ensure that when the time comes in Australia for full-scale electric vehicles, Hino will have a product that meets our customers’ needs and specifications,” Mr Emery said.

Meanwhile, the 700 Series Hybrid Electric, which is currently being tested locally with customers, is not high on Hino’s agenda as the company instead works to rectify the 300 and 500 Series stop gaps.

“Although we want to do it, it’s down on the list,” said Mr Emery.

“The truth is that there’s a priority list, and we have priorities that are higher because of limited resources, so yes it’s what we want to do and we’ve got customers who are interested in the 700 Series Hybrid…but conventional diesel Euro 6 is the priority for us.”