On February 26, the Japan Fair Trade Commission announced its approval for the business integration of major commercial vehicle manufacturers Hino Motors and Mitsubishi Fuso Truck and Bus. This merger raises concerns about potential monopolistic behavior in the truck and bus markets. The commission has stipulated conditions that require the newly formed company, named ‘Archion,’ to support competitors, particularly the Scandinavian Scania Group, to ensure a competitive environment in the market.

Following the merger, Hino Motors and Mitsubishi Fuso will establish a new company in April, with their respective parent companies—Toyota Motor Corporation and Germany's Daimler Trucks—each acquiring a 25% stake in Archion. This merger will lead to a reconfiguration of domestic commercial vehicle manufacturers in Japan, centering around two primary factions: Hino with Mitsubishi Fuso, and Isuzu along with its subsidiary UD Trucks. The approval reflects the regulatory balance that aims to sustain competition in a potentially dominant market structure.

The decision by the Fair Trade Commission signifies an important step in addressing the competitive landscape of the Japanese commercial vehicle industry. The need for measures to support weaker competitors highlights the ongoing dynamics of market power and the challenges posed by consolidations in key sectors, particularly as the automotive industry faces increasing pressure from global competitors. The outcome of this merger could set a precedent for future consolidations in the industry, especially regarding how regulatory bodies assess and mitigate competition risks in similar cases.