Isuzu to Invest in Autonomous Driving Test Facility by 2027

According to Nikkei News, Shinsuke Minami, the president of Japanese truck manufacturer Isuzu, revealed that the company plans to invest approximately 7 billion yen (about 47.1 million USD) to build an autonomous driving test facility in fiscal year 2027. The test facility will be located at Isuzu's testing base in Hokkaido and is expected to be operational by the fiscal year 2027, aimed at simulating urban driving environments to enhance the accuracy of its autonomous driving technology. Minami stated, "We need a testing environment that can replicate various road conditions in a typical city, such as turning and parking scenarios." The testing base in northern Hokkaido spans 4 million square meters, with the new facility occupying about 200,000 square meters. It will be equipped with common urban facilities like crosswalks and traffic signals, allowing Isuzu to test various road conditions to ensure its autonomous driving technology can make correct decisions to avoid dangers. Isuzu is committed to achieving Level 4 autonomous driving for its trucks and buses, which entails fully unmanned operation under specific conditions. Last November, Japan's four major commercial vehicle manufacturers began joint testing of Level 4 autonomous driving technology on major highways in Japan. Startups will also be able to utilize Isuzu's new testing facility. Last year, Isuzu invested in the Tokyo-based autonomous driving startup Tier IV and collaborated with several American startups to develop autonomous truck technology. Isuzu is facing increasing competition domestically. In June, reports indicated that Toyota Motor Corporation and Daimler Trucks reached a final agreement to complete the merger of Toyota's Hino Motors with Daimler's Mitsubishi Fuso by April 2026, with the new entity operating as a holding company. Following the merger, Japan's commercial vehicle market will be divided into two major camps: Isuzu and its subsidiary UD Trucks on one side, and the Hino-Mitsubishi Fuso alliance on the other. Therefore, Isuzu is striving to enhance its competitiveness. Sales data shows that in 2024, Isuzu and UD Trucks will collectively hold a 51% market share in Japan, while Hino Motors will rank second with a 27% share; however, the merger agreement will lead to a more balanced market share between the two alliances. Minami pointed out, "Hino and Mitsubishi Fuso each have strong sales networks, and the merger could strengthen their product capabilities." Isuzu completed the acquisition of UD Trucks in 2021, and both companies plan to integrate their sales companies by March 2027. Minami stated, "This integration will unify systems and operational processes to maximize the utilization of service facilities between the two parties." Beginning in 2028, Isuzu and UD Trucks will sell heavy trucks in the Japanese market based on a shared vehicle platform, with expected synergy benefits exceeding 40 billion yen by fiscal year 2030. Minami noted, "Isuzu acquired UD Trucks five years ago, and we have finally aligned all departments."