Isuzu Motors Ltd. (OTC:ISUZY) is set to introduce compact electric trucks in the U.S. market, ahead of the impending stringent CO2 emission regulations.
What Happened: Isuzu Motors is gearing up to launch locally assembled compact electric trucks in North America from August, reported Nikkei on Wednesday.
The company plans to expand its offerings to midsize trucks by 2026, in anticipation of the stricter U.S. vehicle emissions regulations set to be implemented in 2027.
The compact trucks, with a range of 68-130 miles (109-209 km), will be primarily leased to customers, such as logistics companies. The performance specifications for the midsize trucks will be determined later.
Despite the higher cost of electric trucks compared to their gasoline-powered counterparts, Isuzu is making this move to establish a foothold in the U.S. EV truck market, which is projected to grow from approximately $700 million in 2023 to $15.1 billion by 2030, according to research specialist P&S Intelligence.
Isuzu will export components from Japan for assembly by a local partner. The U.S. Environmental Protection Agency is planning to impose stricter CO2 emissions reduction requirements for passenger vehicles and trucks, starting in 2027.
Why It Matters: Isuzu's entry into the U.S. electric truck market comes at a time when the industry is experiencing significant shifts.
Tesla Inc. (NASDAQ:TSLA) has faced delays in its ambitious plans. Although Elon Musk had promised to produce 50,000 Tesla Semi trucks by 2024, the actual production has been slower than anticipated. Tesla aims to start high-volume production of its Semi trucks by 2025, with deliveries to external customers expected by 2026.
Major players like Amazon.com Inc (NASDAQ:AMZN) have made substantial strides towards zero-emission logistics. Amazon recently introduced its first batch of Volvo electric big rigs at the Los Angeles/Long Beach port complex, marking a significant step towards its goal of net-zero carbon emissions by 2040.
Isuzu's decision to enter the U.S. electric truck market aligns with the company's broader strategy to embrace electric vehicles and adapt to the changing automotive landscape.
Image Via Pixabay
This story was generated using Benzinga Neuro and edited by Kaustubh Bagalkote