HIsuzu Motors, a Japanese commercial vehicle and diesel engine manufacturer, is expanding localisation and advancing its green transformation in Vietnam by strengthening ties with local suppliers, Thai Van Toan, senior executive director of Isuzu Vietnam, stated to a local daily.

The company initially invested approximately US$ 50 million in Isuzu Vietnam - a Japan-Vietnam joint venture - to develop local production, expand its supplier network, and promote cleaner technologies in line with its global net-zero emissions target by 2050.

Toan, who oversees sales and after-sales services, indicated that the company currently produces commercial trucks entirely in Vietnam, while pickup trucks and SUVs are imported.

The localisation rate ranges from 17 to 50%, depending on vehicle type, with higher levels in specialised models such as cranes and garbage trucks.

Toan noted that large-scale production is necessary to make local parts cost-competitive.

"Isuzu collaborates with Vietnamese partners such as Thaco to source key components, including leaf springs, seats, and glass. All locally sourced parts undergo quality assessments by Japanese experts before use in production," he stated.

The company plans to gradually expand local sourcing to include more advanced components, such as electronic parts and engine accessories.

Despite competition from low-cost Chinese trucks, Toan described the situation as a challenge for innovation rather than a threat.

"Low prices may attract buyers in the short term, but long-term trust is established through quality," he noted.

As part of its green transformation roadmap, Isuzu is assessing Vietnam's infrastructure readiness for electric and hydrogen-powered vehicles.

The company launched a light-duty electric truck in Japan and North America in 2023 and plans to expand to other markets, including Vietnam.

When conditions permit, Toan indicated that Isuzu could assemble electric trucks at its existing Vietnamese facility without significant new investment.

In collaboration with Honda, Isuzu is also developing heavy-duty hydrogen trucks with a total load capacity exceeding 25 metric tons, intended to support environmentally sustainable logistics and comply with stricter environmental standards at major ports and export markets, including Europe.

The two companies plan to begin pilot operations in select Asian markets prior to full-scale deployment in the early 2030s.

Vietnam is among the first global markets to receive Isuzu's new technologies, following Japan.

The company was the first automaker in Vietnam to introduce the common rail diesel system in 2008, ahead of the country's emission standard upgrades, and continues to adopt clean technologies.

Toan stated that stronger government policies are needed to support domestic parts suppliers and encourage the development of supporting industrial clusters.

While Isuzu Vietnam continues to expand its dealer network, currently encompassing nearly 30 outlets nationwide with plans to add four to five annually, limited land availability and lengthy licensing procedures remain barriers.

"Truck dealerships require large sites, often outside urban areas, yet many of these lands are still classified as agricultural," Toan explained.