Japan to launch pickup truck production in Ukraine to meet military demands for reliable off-road vehicles.

On December 17, 2024, the Ukrainian Ministry of Economy announced plans to assemble Japanese pickup trucks locally. First Deputy Prime Minister and Minister of Economy Yulia Svyrydenko made the announcement during a business forum organized by the Japan External Trade Organization. The project, a joint venture involving Ukrainian manufacturers and a Japanese engineering company, will initially use semi-knockdown (SKD) technology, with a transition to complete knockdown (CKD) production planned later. Svyrydenko stated that this initiative signals potential for broader Japanese investment in Ukraine and encouraged Japanese companies to consider localizing production through partnerships with Ukrainian enterprises.
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The Ukrainian Armed Forces have increasingly used Japanese pickup trucks, notably the Isuzu D-Max and Toyota Hilux, due to their off-road capabilities, reliability, and maintainability, which suit Ukraine's operational environments. (Picture source: Ukrarmor)

Svyrydenko outlined the available incentives for investors, including tax and customs benefits, as well as government programs under the "Made in Ukraine" policy. She highlighted Ukraine’s industrial capabilities, such as a skilled workforce and modern equipment, which make it a competitive partner for foreign companies. Ukraine has also introduced insurance options to mitigate military risks, with coverage available from the American Development Finance Corporation (DFC), the Multilateral Investment Guarantee Agency (MIGA), the European Bank for Reconstruction and Development (EBRD), and Ukraine's Export Credit Agency (ECA). Japan has contributed $36 million to the SURE Trust Fund, which supports MIGA’s operations. Additionally, Japanese agencies like JICA and JICS have supported projects in Ukraine, including placing orders with local companies under the principle of "help Ukraine with Ukrainian goods."

The Ukrainian Armed Forces have increasingly used Japanese pickup trucks, notably the Isuzu D-Max and Toyota Hilux, due to their off-road capabilities, reliability, and maintainability, which suit Ukraine's operational environments. The vehicles support various roles, including troop transport, medical evacuation, and use as platforms for light weaponry. The National Police of Ukraine employs specialized Isuzu D-Max pickups for patrols, outfitted with acoustic signals, protected cargo compartments, and communication systems. Additionally, tactical vehicles such as the Mitsubishi Type 73 light trucks, supplied by Japan, contribute to enhancing operational mobility and support functions.

Examples include a delivery of 51 Fiat Fullback 4x4 pickups in April 2022, designated for use by Ukrainian units such as ATGM and MANPADS squads. The Fiat Fullback, manufactured from 2016 to 2019, was developed through a collaboration between Fiat and Mitsubishi Motors, sharing its mechanical platform and engines with the Mitsubishi Triton/L200. A Mitsubishi L-200 pickup from the Kryvyi Rih Military Police Brigade was also armed with three Grad-P 122mm launch tubes. Additionally, 26 pickups, mostly Japanese, were donated by British farmers in November 2023 and delivered to Lviv by a volunteer group, increasing the total number of donated vehicles to over 500 units. In August 2022, deliveries also included 90 Mitsubishi L-200 AWD pickups, provided as part of a package valued at over UAH 95 million (approximately $2.5 million) from Viktor Karachun and Yevhen Yermakov, co-owners of ATB Corporation.

Isuzu has been a key participant in these efforts since January 2024, with plans to assemble its D-Max pickup trucks at the Cherkasy Bus Plant, part of Ataman Enterprises. This decision aligns with Ukraine’s increased demand for vehicles that can operate in challenging environments. The D-Max, equipped with a 1.9-liter turbo-diesel engine producing 163 horsepower, is capable of traversing rough terrain and mounting heavy weaponry such as machine guns and mortars. The Cherkasy plant, which produced 500 buses and 350 trucks in 2023, plans to expand production in 2024 with targets of 600 buses and 500 trucks. Localization levels for buses are currently at 67%, while trucks are at 30%, with plans to increase these figures. The plant is also set to increase its workforce from 400 to 460 employees to meet production demands.

Since March 2022, Japan has provided over $12 billion in assistance to Ukraine, including $4.5 billion in 2024. This support focuses on financial, technical, and humanitarian aid rather than the delivery of weapons. The collaboration between Ukrainian and Japanese entities spans various sectors, including industrial production, military support, and demining, highlighting ongoing efforts to address Ukraine’s immediate needs and long-term reconstruction challenges.

The Japanese government has also directly provided military vehicles to Ukraine. In June 2024, 101 vehicles were transferred to Ukrainian forces, including Toyota HMV off-road vehicles, Mitsubishi Type 73 SUVs, and Morooka PC-065B tracked engineering vehicles. The Toyota HMV is powered by a 4.1-liter turbocharged diesel engine with 155 horsepower and has a payload capacity of one ton. The Mitsubishi Type 73, a four-wheel-drive vehicle used for command purposes, can carry 440 kilograms and is equipped for various tasks. The Morooka PC-065B is a tracked engineering vehicle with a payload of 3 tons, capable of operating in difficult terrain and supporting engineering activities.

In addition to military support, Japan has financed humanitarian initiatives. In July 2023, 14 Toyota Hilux pickups were delivered to the State Emergency Service of Ukraine for mine clearance operations under a UNDP project. These vehicles were equipped with specialized gear and financed by Japan. Other efforts include the delivery of demining equipment, such as the Nikken BM307-V16 machines, which can clear up to 800 square meters per hour and penetrate 30 centimeters into the ground. These machines, developed in collaboration with JICA and Nikken Corporation, are deployed in heavily mined areas such as Zaporizhzhia and Donetsk. Japan has also provided training for Ukrainian operators and established repair facilities for the equipment.