[Company analysis] Hino Motors, Ltd. (日野自動車)

「Hino Motors, Ltd. (日野自動車)」is a member of the Toyota Group, mainly manufactures commercial vehicles such as trucks and buses. In the Japanese commercial vehicle market, It has the top share. In the world level, they are one of the top 10 heavy truck manufacturers. In addition to their own business, they can also manufacture light trucks, and SUVs based on the model of「Toyota Motor Corporation」. The number of consolidated employees is approximately 34,069.

 

1. Company Profile

2. Summary and Features

3. Major Business

4. Financial Information

 

 

 

1. Company Profile

 

※Unit is JPY million, as of 2019

Company name	Hino Motors, Ltd.
Company name (Japanese)	日野自動車
Date of establishment	Monday, August 1, 1910
Headquarters location	〒191-8660 東京都日野市日野台三丁目1番地1
Capital	72,717
Consolidated sales	1,981,331
Consolidated operating profit	86,717
Consolidated total assets	1,345,821
Consolidated capital	596,459
Capital adequacy ratio	44.3%
Consolidated number of employees	34,069

 

 

 

2. Summary and Features

 
In 1942, 「Hino Motors」 was established by being independent from「Diesel Motor Industry Co., Ltd.(ヂーゼル自動車工業)」. Originally,「Diesel Motor Industry」 was designated as a diesel engine vehicle manufacturer by Japanese government, was founded by business integration between「東京瓦斯電気工業(Tokyo Gas and Electric Industry Co., Ltd.)」who was founded in 1910 and「石川島自動車製作所(Ishikawajima Automobile Factory)」who was foundded in 1937. Since the founding of「Hino Motors」, they mainly manufactured trucks as a national policy business.

Immediately after the end of the World War II, they developed ultra-large trailers, trucks, buses, etc., which were unusual at the time, by utilizing diesel engine technology in 1946. Since 1953, they decided to enter into the personal automobile market with a license by forming a technical partnership with「Renault」. However, in 1966, this company maded a business tie-up with「Toyota Motor Coporation」, and they eventually forfeit personnal automobile business. After that, we started to concentrate on manufacturing commercial trucks and buses.

Until that time, in the field of automobile engine,「Hino Motors」got the 4th largest sales in Japan. However, in 1972, with the start of production of the "Akai engine(赤いエンジン)" used in heavy commercial vehicles, they achieved the top share in the Japanese commercial vehicle market. In 2001, it was completely purchased by「Toyota Motor」and became their subsidiary. In 2003, the bus division of「Isuzu Motors」was merged with「Hino Motors」, in order to improve management efficiency. As a result,「Hino Motors」became in charge of development of conventional buses and「Isuzu Motors」became in charge of regular buses.

「Hino Motors」also handles diesel engines for automobiles and industries, and its technology level is evaluated to be the highest in the world. For example, it is the company who released the world's first hybrid bus. Based on this high technological level, commercial automobile business of「Hino Motors」was expanded in 90 countries around the world, and they got the top share in Taiwan, Thailand, Indonesia, Malaysia, Pakistan, Peru, etc. Such overseas sales exceed the domestic sales, accounting for about 70% of the total.

 

 

 

3. Major Business

 

■ Truck business
They produce large, medium and small trucks, and if we limit ourselves to large and medium trucks, they will maintain the top market share in Japan for 46 consecutive years as of 2019.

■ Bus business
They manufactures OEM models of「Toyota Motor」and「Isuzu Motors」.

■ Industrial diesel engine
They handle diesel engines required for mobile cranes, forklifts, road rollers, small engines for ships, compressors, generators, etc.

 

■ Other 

They manufacture and sell Type 73 medium-duty trucks and highly mobile vehicles for the Ground Self-Defense Force. 

 

 

 

4. Financial information

 

※Unit is JPY million

		2016	2017	2018
Consolidated sales		1,683,720	1,837,982	1,981,331
Consolidated operating profit		71,178	80,331	86,717
Consolidated total assets		1,192,385	1,295,191	1,345,821
Consolidated net assets		512,913	552,848	596,459
Breakdown of sales	Japan	1,168,480	1,211,772	1,301,537
	Asia	314,763	388,278	417,477
	Others	200,477	237,931	262,315