Press Release

June 28, 2012


Re: Initiative in Isuzu China Operations
- Isuzu establishes New Joint Venture Companies -


Isuzu Motors Limited (President Mr. Susumu Hosoi, hereinafter called "Isuzu") is pleased to announce that it will establish new joint venture companies, one that is responsible for vehicle engineering and another in charge of manufacturing, purchasing and exporting of vehicle components in Chongqing with its partner, Qingling Motors Group. (hereinafter called "Qingling"). This move is intended to enhance CV business in China, the largest commercial vehicle market in the world and to boost the global competitiveness of Isuzu heavy-duty commercial vehicles envisioned under the Company's mid-term business plan.

Recent years have seen the rapid growth of Chinese commercial vehicle (CV) market and demand for heavy-duty commercial vehicles topped one million units in 2010 to make China the largest CV market in the world. In April 2001, Isuzu started production of heavy trucks (equivalent to medium- to heavy-duty trucks in Japan) in Qingling. Since then, Isuzu truck has been highly reputed by many customers for its value of durability, reliability and much more.

Taking advantage of exceedingly large CV demand in China and leveraging strong Isuzu brand, Isuzu will strengthen its heavy-duty CV business in China. A new vehicle engineering JV will allow for local engineering work in China for next-generation heavy-duty truck. This engineering activity will be performed in collaboration with Qingling and local parts suppliers in China and hence we will speedily develop next-generation heavy-duty truck which suits local market needs and boasts of superb cost competitiveness. Meanwhile, a new manufacturing, purchasing and exporting JV will help localization in China of main heavy-duty engine components for cost reduction and these components will be supplied not only to Qingling but to Isuzu Group along with other localized vehicle components and engine parts in China to fill requirements in Japan. In doing so, Isuzu seeks greater competitiveness of its heavy-duty truck on the global scale.

End


[Outline of Engineering JV]
Company Name ISUZU QINGLING (CHONGQING) ENGINEERING CO., LTD.(Tentatively called)
Location 1, Xiexing Road, Zhong Liang Shan, Jiu Long Po District, Chongqing, The People's Republic of China (in Qingling Motors' compound)
Representative Masaru Odajima
Type of Business Planning and engineering of new product including a new heavy-duty truck and its relevant parts and components
Capital USD 4 million (approx. JPY320 million)
Shareholders Isuzu Motors Limited   75%
Qingling Motors Co., Ltd.   25%
Date of Establishment August 2012 (plan)

[Outline of Manufacturing, Purchasing and Export JV]
Company Name ISUZU QINGLING (CHONGQING) AUTOPARTS CO., LTD. (Tentatively called)
Location 1, Xiexing Road, Zhong Liang Shan, Jiu Long Po District, Chongqing, The People's Republic of China (in Qingling Motors' compound)
Representative TBD
Type of Business Production of engine parts and sale of vehicle and engine parts
Capital USD 240 million (approx. JPY19.2 billion) *1
Shareholders Isuzu Motors Limited   51%
Qingling Motors (Group) Co., Ltd   49%
Date of Establishment August, 2012 (plan)
*1   Both shareholders agree that the new company will be capitalized at USD 180 million when it is established and USD 60million capital will be added by two shareholders on pro rata basis in two years time.