Tokyo, July 16 (Nikkei News Service) - Japanese commercial vehicle manufacturer Isuzu Motors has announced plans to invest approximately 7 billion yen (roughly USD 471 million) to construct a cutting-edge testing facility for autonomous driving in Japan's northern Hokkaido region by fiscal year 2027.
According to President Shinsuke Minami, the new test track will be built within Isuzu's existing 4-million-square-meter proving ground in Hokkaido. Spanning around 200,000 square meters, the facility will replicate real-world urban driving conditions, including intersections, traffic signals, pedestrian crossings, and complex maneuvers such as turning and parallel parking.
"We need a test environment that accurately mirrors the diverse scenarios encountered in everyday city driving," Minami stated, emphasizing the facility's role in refining Isuzu's self-driving technologies for commercial trucks and buses.
The company aims to develop Level 4 autonomous capabilities, where vehicles can operate without human intervention under specific conditions. Isuzu has been participating in joint trials for Level 4 technology with Japan's major commercial vehicle makers on national highways since November 2023.
Isuzu also plans to make the test track available to startups and technology partners. The company has already invested in Tier IV, a Tokyo-based autonomous driving startup, and has ongoing collaborations with several American tech firms to co-develop autonomous truck solutions.
The move comes amid intensifying competition in Japan's commercial vehicle sector. In June 2024, Toyota Motor Corporation and Daimler Truck finalized plans to merge their truck units-Hino Motors and Mitsubishi Fuso-under a single holding company by April 2026. This merger would create a major rival to Isuzu, effectively dividing the Japanese market into two dominant groups: Isuzu and its affiliate UD Trucks, and the new Hino-Fuso alliance.
As of 2024, Isuzu and UD Trucks together hold a 51% share of the Japanese commercial truck market, while Hino commands around 27%. Post-merger, both groups are expected to control roughly equal market shares. "Hino and Fuso each have robust sales networks. Their merger will likely enhance their combined product competitiveness," Minami acknowledged.
To reinforce its position, Isuzu has accelerated integration with UD Trucks since completing its acquisition in 2021. The two companies are on track to merge their domestic sales operations by March 2027, aiming to unify systems and streamline operations. "This integration will help us optimize the use of service facilities and improve efficiency," Minami said.
Starting in 2028, Isuzu and UD Trucks plan to roll out heavy-duty trucks built on a shared platform for the Japanese market. The company anticipates that synergy from the partnership could generate over 40 billion yen (approximately USD 270 million) in economic benefits by fiscal 2030. "It's been five years since the acquisition, and now all departments are finally working in step," Minami noted.
Isuzu's investment in advanced autonomous vehicle development, coupled with organizational consolidation, signals its determination to maintain a leading edge in an increasingly competitive commercial vehicle landscape.
