Karl Deppen, CEO of Toyota-backed Archion (which owns Hino and Mitsubishi Fuso), argues that established truckmakers can slow China’s export push by leveraging their extensive repair networks. With 3,700 global service locations, Archion emphasizes brand trust and parts availability as key defenses against cheaper Chinese rivals. The article notes that while Chinese truck exports quadrupled to 420,000 units since 2021, a Thailand flood crisis highlighted Toyota’s superior service response compared to BYD.
Japanese truckmakers have lost market share in Southeast Asia, dropping from 68% to under 50%, while China’s rose to 39%. To combat this, Toyota and Daimler Truck merged Hino and Fuso into Archion in April, targeting a 30% sales increase to 280,000 units and ¥2.8 trillion revenue by 2032. The merger aims to improve profitability through shared platforms manufacturing 85% of trucks.
However, combined sales have slumped 40% from a 2018 peak of 367,000 units due to an Hino engine certification scandal and Chinese competition. CATL CEO Robin Zeng predicts half of China’s truck fleet will be electric within three years, but Deppen notes most Chinese exports remain diesel-powered, with viability varying by market.
Source: Financial Times Companies · Summarized by HeadlinesBriefing