2 Japan auto giants hike stakes in PH truck firm

Japanese automotive giants Hino Motors Ltd. and Marubeni Corp. have raised their stakes in local truck and bus manufacturer Pilipinas Hino Inc. as they seek to tap the growing potential of the local commercial vehicle market.

Under the new partnership, Pilipinas Hino was renamed Hino Motors Philippines Corp. (HMP), 70 percent of which is now held by Hino Motors Ltd., 20 percent by Marubeni and the 10 percent by the local partners. Prior to the equity restructuring, the Japanese partners had a combined 30-percent stake in the company.

“With Hino and Marubeni, we will be able to make the investments required to broaden our product line. To address the growing demand, we need to be able to drastically increase our production capacity and inventory and expand our dealer network from 15 to 20,” HMP chair Vicente T. Mills Jr. said in a briefing on Thursday.

“We felt that it’s better to make sure the company is able to respond by allowing our (Japanese) partners to increase their presence here. With the brand principal as the majority owner, we will also be able to access the latest technologies, lessons learned from other Hino operations in the Asean,” Mills added.

Mills said that over the next 12 months, HMP would be investing P80 million in plant expansion, installation of new equipment, modifications and improvements in IT and business process.

This initial capital outlay will help the company raise sales to about 4,000 units from the 1,300 trucks and buses that it sold last year. Production capacity at the company’s facility in Laguna is expected to increase to about 3,000 units from the existing 2,000 units, he said.

HMP is currently one of the fastest growing bus and truck suppliers in the country. It has been growing by about 70 percent, outpacing industry growth of around 30 percent. As of end July this year, Hino was the biggest player in the bus segment as it accounted for 56 percent of the total number of buses sold during the seven month period. For trucks, Hino captured the second biggest share of 20 percent next to Isuzu Philippines.