Following the news that Volkswagen Group’s commercial vehicle division Traton and Japanese truck and bus maker Hino Motors have signed a joint venture (JV) agreement for e-mobility;

Bakar Sadik Agwan, Senior Automotive Consulting Analyst at GlobalData, a leading data and analytics company, offers his view:

“Hino Motors seems to be well on track with its electrification strategy. The company, which is a key commercial vehicle brand in Japan, Asia and North America, has made major developments in the electric vehicle (EV) segment this year. Recently, Hino signed a commercial battery electric vehicle (BEV) JV with BYD and announced establishment of Toyota-Hino collaboration in March 2020 to co-develop heavy-duty fuel cell trucks. The Traton-Hino JV, which follows the existing long-term strategic cooperation signed between both the parties in 2018 and a procurement JV signed later in 2019, focuses on the manufacturing and supply of BEVs and FCVs, new EV manufacturing platform and components in Europe and Japan.

“The JV is a win-win for both parties and will not only shorten the lead time for product development and full-scale distribution, reduce development costs but also strengthen Hino’s position as a leading electric mobility company in the Asia-Pacific commercial vehicle market. Traton will also support Hino’s expansion in the Europe region, where it presently holds very small market share. The investment is in-line with Traton’s commitment to invest EUR1bn in electrification by 2025. It will help Traton to launch new electric bus and truck models in near-term.

“The success of electric passenger vehicles in Europe and Japan, robust charging infrastructure and supply/demand incentives by governments have made electrification in commercial vehicles a significant area of opportunity. Subsequently, there is a growing interest among OEMs including Hyundai, Toyota, Hino and Nikola to develop heavy-duty fuel cell trucks. Against this backdrop, the Traton and Hino JV is expected to combine the CV and EV capabilities of both the companies to gain a competitive edge in the global market.”