Japanese truck makers Hino Motors and Mitsubishi Fuso Truck and Bus announced on June 10 that they will integrate and start operations in April 2026.

The two companies will become part of a holding company they plan to establish with more than 40,000 employees.

Their respective parent companies, Toyota Motor and Germany's Daimler Truck, plan to each hold 25 percent of the holding company's shares.

With the merger, Japan will have two major truck makers, with the other one being Isuzu Motors.

The move comes as the global race for autonomous driving and electrification heats up for trucks and other commercial vehicles.

Hino and Mitsubishi Fuso hope to work together to develop technologies including decarbonization and hydrogen energy so they can enhance their presence in the competition.