Japan's Isuzu looks to Asia in midterm plan

Japan's largest truck maker Isuzu said Tuesday it aimed for operating profits to rise 40 percent in the next four years as it focuses on overseas markets, particularly in Asia.

Isuzu Motor Ltd. set the mid-term goals despite anticipation that demand will remain sluggish in Japan, where the population is declining and demand for environment-friendly trucks is seen as having peaked.

Isuzu, in which fast-growing Toyota Motor Corp. holds a stake, said it aimed to rack up operating profit of 150 billion yen (1.3 billion dollars) by the fiscal year to March 2011, up 40 percent from the year to March 2007.

The company said it also aims for a 20 percent rise in revenue to two trillion yen in the same period.

Isuzu said it planned to focus more on pick-up trucks, for which it sees rising growth, particularly in emerging Asian markets such as Thailand.

"The plan sets out to expand and enhance overseas bases, strengthen products, expand the lineup and build up basic technological capabilities," a statement said.

Isuzu has been competing in Thailand with Toyota, which last year bought a 5.9 share in the truckmaker.

The stake had been put on sale by ailing US giant General Motors, which is jostling with Toyota for the crown of the world's top-selling automaker.