The move is seen as an attempt to stay competitive at a time when global automakers are faced with US trade tariff uncertainty and new Chinese rivals.

The companies had said yesterday that the integration of Hino and Daimler’s subsidiary Mitsubishi Fuso Truck and Bus would “establish a new strong Japanese truck powerhouse”.

They said they aimed to complete the merger, on an equal footing under a listed holding company, by April 2026.

Hino Motors shares were down more than 12% in morning trade today.

“Daimler Truck and Toyota will each aim to own 25% of the (listed) holding company of the integrated Mitsubishi Fuso and Hino,” a joint statement said.

“The companies aim to improve business efficiency in areas such as development, procurement and production,” it said.

“They expect to significantly enhance the competitiveness of Japanese commercial vehicle manufacturers and strengthen the foundation of the automotive industry in Japan and Asia,” it added.

The new company will work to develop models using new fuels and technologies, from electric trucks and hydrogen-powered trucks to autonomous driving systems.

Japanese firms have lost ground in the electric vehicle (EV) market in recent years by focusing more on hybrid vehicles, industry analysts say.

China’s highly competitive EV market is the largest in the world, led by Shenzhen-based carmaker BYD, which is accelerating its overseas expansion.