Japanese automaker Isuzu Motors is planning to build a new pickup truck assembly plant in the US by 2027 that will produce electric vehicles (EV) and gas-powered cars.
Nikkei reported that Isuzu has invested roughly US$300 million into the new US assembly plant, which will have an annual production capacity of 50,000 vehicles.
During a summit meeting with US President Donald Trump on February 7, Japanese Prime Minister Shigeru Ishiba mentioned that Isuzu and Toyota Motor both have plans to build new factories in the US, emphasizing that the investment by the Japanese companies will help promote local employment.
Isuzu currently has four subsidiaries in the US, none of which are assembly plants but rather bases for sales, maintenance, research, and design. Production of commercial vehicles, such as trucks, is mainly outsourced to local companies, while key components are imported from Japan.
Isuzu is expected to import most components from Japan for assembly in the US in the early stages of the new assembly plant. However, with Trump planning to slap tariffs on all overseas products, Isuzu says it will adjust accordingly and increase the proportion of components it purchases in the US as needed in the future.
The US market has been positioned as a key market for priority investment for Isuzu. In terms of EVs, Isuzu has already launched electric trucks in Japan, though they have yet to be popularized. As a result, the company plans to expand EV sales in the US market, where demand is higher.
Isuzu began selling small-sized electric trucks in North America in August 2024 and plans to launch mid-sized electric trucks in 2026.
According to data from research firm P&S Intelligence, the US electric truck market was valued at US$700 million in 2023 and is expected to reach US$15.1 billion by 2030.
Isuzu's financial forecast for the 2024 fiscal year, running April 2024 to March 2025, is that revenue will decrease 4% year-over-year to approximately JPY3.25 trillion (approx. US$21.42 billion). Operating income will slide 22% year-over-year, down to JPY230 billion.
Isuzu's global sales were down 24% year-over-year for the April to December 2024 period, falling to 389,000 vehicles. This was mainly attributed to changes in the Thai market, where, due to rising interest rates, the local government became stricter on car loan reviews, resulting in the sales of pickup trucks dropping by 65%. Competition with Toyota has also led to a decline in market share.
