Isuzu Motors : unveils Mid-Term business plan “ Transformation (IX)”– Transforming into a commercial mobility solutions company by 2030

Isuzu Motors Limited (headquartered in Yokohama, Kanagawa, Japan; President and COO: Shinsuke Minami; hereinafter "Isuzu") has released its new Mid-Term business plan, "ISUZU Transformation - Growth to 2030 (IX)", with the aim of transforming itself into a commercial mobility solutions company by 2030, to address challenges faced by customers and society through transport. Leveraging "Reliability x Creativity", the company will drive future growth by developing new businesses starting from three areas: (1) Autonomous driving solutions, (2) Connected services, and (3) Carbon neutral solutions. By promoting these new areas of growth, while strengthening current businesses, the Group is targeting net sales of 6 trillion yen and an operating income ratio of 10% or more by FY2031.

Conceptual image of "ISUZU Transformation (IX)"

1. 1Background
   In May 2023, Isuzu Group formulated its new corporate philosophy ISUZU ID^ⅰ. It acts as a guide in helping ensure all Group employees share the same values and work together in the midst of a once-in-a-century transformation of the logistics and transportation industry. "Moving the World-for You" is the Group's stated purpose, with a vision to "Advance the world as an innovation leader with Reliability x Creativity'". In order to accelerate carbon neutrality (CN) and digital transformation (DX) in the realm of logistics, the Group has committed to investments in innovation totaling 1 trillion yen by FY2031.
   "Isuzu Transformation (IX)" takes into account the achievements of the previous "Mid-Term Business Plan 2024" (from April 2021 to March 2024) while backcasting future scenarios based on the anticipated business environment, as well as optimization of ISUZU ID and the Group's vision for 2030.
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3. 2Management Policy

   Toward 2030, Isuzu Group will expand its business model to a new solutions business approach. In order to achieve this, the Group aims to become a commercial mobility solutions company that addresses challenges faced by customers, society, and all other stakeholders, by driving the expansion of current and future businesses.

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5. 3Development of new businesses to drive innovative transport
   Isuzu Group will accelerate the commercialization of innovation in three areas, laying the foundation for strong business growth in the future.
   By the 2030s, the Group aims to achieve sales equivalent to 1 trillion yen from these growth areas.

   (1) Autonomous driving solutions

   From FY2028, Isuzu Group plans to launch a new Level 4 autonomous driving truck and bus business. The Group has begun acquiring autonomous driving technology and building basic services from this spring. After verification testing in collaboration with alliance partners, initial applications will include highway and hub-to-hub transportation for trucks and urban transit routes for buses, gradually starting from FY2028.

   (2) Connected services

   In Japan, Isuzu Group will provide services to improve operational efficiency for transport companies and shippers, and create new services by linking cross-industry data with GATEX^ⅱ, a commercial vehicle information platform, to address challenges faced by the logistics industry, such as a shortage of drivers. In addition, PREISM^ⅲ, an advanced maintenance program, and EVision^ⅳ, a total solution program to support the introduction of BEVs, will be made available in North America, and rolling out to major overseas markets by 2028.

   (3) Carbon neutral solutions

   By collaborating with various partners, Isuzu Group will promote CN through multi-pathway. Specifically, CN products will be added to all product categories by 2030. Furthermore, in anticipation of the expansion of CN products in the 2030s, the Group will drive the shift to a carbon neutral society by introducing price-competitive BEVs and promoting the full-scale development of peripheral businesses, such as the EVision Cycle Concept^ⅴ, a battery-swapping solution.

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7. 4Strengthening current businesses to support reliable transport
   By further strengthening its core business, Isuzu Group aims to achieve new vehicle sales of more than 850,000 units, valued at over 5 trillion yen in FY2031. In the CV business, Isuzu and UD Trucks (hereinafter "UD") will further accelerate the creation of synergies through joint sales and service channels as well as products, further expanding global sales. In the LCV^ⅵ business, while increasing sales in growing markets, Isuzu will promote the diversification of power sources and the development of technologies for next-generation models toward 2030, driving business growth.
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9. 5Market and Monozukuri base strategy
   In Japan, the United States, and ASEAN, which Isuzu Group has identified as priority regions, the Group will continue to invest in the entire supply chain, especially in terms of increasing production capability. Furthermore, in India and Africa-strategic regions with future growth potential-the Group will make efforts to further penetrate the brand and expand its presence.
   

   Priority market and Monozukuri base (1): Japan
   In order to secure adequate global production volume, Isuzu Group will develop robust supply chains. With ongoing labor shortages in Japan, the Group will utilize tools such as generative AI to improve efficiency and modernize existing infrastructure, as well as invest in optimizing domestic manufacturing systems. The Group will also invest 205 billion yen in enhancing sales and service functions that support new vehicle sales and existing fleet operators. Through these efforts, the Group aims to strengthen current businesses.
   In response to 2024 workstyle reform legislation, Isuzu Group will work to improve operations from the perspective of the shipper, taking into account the actual hours worked by the driver and loading rates, striving to reduce driver workload. In addition, efforts to develop autonomous driving technology and new businesses are synonymous with the Group's commitment to support the flow of goods and people, as well as manufacturing, in Japan.

   Priority market and Monozukuri base (2): United States
   Utilizing its experience in BEV business development, the Group will launch light-duty BEVs in the United States. With this as a starting point, the Group will make active investments in the country to strengthen its development and purchasing functions and increase production capacity. In addition, the Group will shift to an after-sales oriented business model and aim to become the market leader in the LCF^ⅶ market.

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11. 6Financial policy
    (1) Financial targets
    (2) Investment overview
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13. 7Establish a management foundation rooted in ISUZU ID
    Isuzu Group is developing a global-standard for human capital management rooted in the ideals of ISUZU ID. As the initial step, the Group will introduce a new HR system this spring and gradually expand the scope of the new system to the entire Group by FY2027.
    In addition, the Group will embrace digital transformation (DX) capabilities and promote the improvement of basic and specialized skills among all employees, as well as the acquisition of new skills to spur innovation. This will facilitate the expansion of technologies and services for new business development, and improve efficiencies in current business operations.
    Furthermore, the Group will work to attract and internally transfer talent, to build a strong human capital base in the DX domain. Isuzu Group will reinvent itself, driving innovation and enhancing the value it offers to the world.

Isuzu Group will flexibly respond to diversifying customer needs and changing business environments. Under "ISUZU Transformation - Growth to 2030 (IX)", the Group will transform itself into a commercial mobility solutions company, leveraging "Reliability x Creativity" to lead the industry in addressing challenges faced by customers and society alike.

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• ^ⅰPress release, "Isuzu Unveils New Corporate Philosophy, 'ISUZU ID,' to Drive ESG- focused Management and Accelerate Innovation" (May 12, 2023)
• ^ⅱPress release "Isuzu, Transtron and Fujitsu Launch Operation of Commercial Vehicle Information Platform 'GATEX'" (October 4, 2022)(Japanese only)
• ^ⅲPREISM website(Japanese only)
• ^ⅳPress release: "Isuzu Launches Total Solution Program 'Evision'-Supporting Solutions to Address Challenges at the Time of Commercial BEV Introduction and Decarbonization -" (March 7, 2023)
• ^ⅴPress release: "Isuzu Announces World Premiere of 'EVision Cycle Concept' a Battery-Swapping Solution" (October 25, 2023)
• ^ⅵLCV: The acronym for Light Commercial Vehicle. It also refers collectively to 1-ton pickup trucks and PPVs (Pick-up Passenger Vehicles) that use pickup trucks as the base vehicle.
• ^ⅶLCF: The acronym for Low Cab Forward Trucks.

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• ISUZU Transformation - Growth to 2030（Document）[PDF:5.56MB]

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