November 20, 2013 Hino Motors, Ltd. Y. Takenaka HDV Regulation Update November 20, 2013 Hino Motors, Ltd. Y. Takenaka

Contents Achievement for 2015 FE Standard Technical feature of 2015 FE Standard

Present Condition of HDV Registration Vehicles　　　　　 CO2

GHG/FE Regulation trends for HDV Year '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21 - 25 '26 - 30 JPN US EPA DOT EU CHN Legislated in 2006 targeting 2015 Target year and standard are not fixed Rule making? GHG Phase I Final Rule Rule making? Phase II FE Phase I Draft Final Monitor Proposal Rule making Start of 1st regulation is not fixed 2nd Stage of constant speed test Revised criteria 1st Stage of new Measurement Final rule of new measurement

Improvement by JPN 2015 FE Std. 2002 2015 Improvement Truck 6.56 (km/L) 7.36 (km/L) 12.2 (%) Tractor 2.07 (km/L) 2.93 (km/L) 9.7 (%) Total 6.32 (km/L) 7.01 (km/L) 2002 2015 Improvement Route Bus 4.51 (km/L) 5.01 (km/L) 11.1 (%) General Bus 6.19 (km/L) 6.98 (km/L) 12.8 (%) Total 5.62 (km/L) 6.30 (km/L) 12.1 (%) Average improvement value in JPN 2015 FE Std. is about 12% during 13 years.

HDV fuel efficiency New tax incentives for fuel-efficient LEVs Reductions in Vehicle Acquisition Tax & Vehicle Tonnage Tax (valid for 3 years from April 2012) Tax Reduction/Exemption Requirements Fuel efficiency Emissions Exempt Compliant +10% compared to 2015 FE standards NOx & PM down by 10% from 2009 standards 75% reduction Compliant +5% compared to 2015 FE standards Compliant w/ 2009 standards 50% reduction Compliant w/ 2015 FE standards Compliant +5% compared to 2015 FE standards EVs, PHEVs, Fuel cell vehicles, Natural gas vehicles 6

Compliant w/ 2015 FE standards HDV fuel efficiency New purchasing subsidies for fuel-efficient LEVs Valid from December 2011 through January 2013; Budget depleted in July 2012 Subsidy Amount GVW Weight Class Requirements Total Allocation 900,000 yen Over 12t Compliant w/ 2015 FE standards 48.8 billion yen 400,000 yen 　 Over 7.5t 200,000 yen 　 Over 3.5t 7

New HDV compliance rate (%) 2015 fuel efficiency standards Trends in average certified HDV fuel efficiency New HDV compliance rate (%) w/ 2015 FE target 2006 Actual 2007 Actual 2008 Actual 2009 Actual 2010 Actual 2011 Actual 2012 Actual 2015 Target 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2015 FE target 2015 fuel efficiency standards 2009 emissions regulations Fiscal year 年度

Contents Achievement for 2015 FE Standard Technical feature of 2015 FE Standard

Elements which compose FE regulation Sub-Elements Issues Examples FE Unit - Transport efficiency or Easy to understand for everybody - km/L - ton.km/L Vehicle classification Simpler category is desired, but needs to reflect to real world compexity - Vehicle type (Tractor, bus….etc) - GVW, type of cabin Items of FE effect Accuracy vs. cost of measurement Contribution for FE - Engine, T/M - Aero dynamic and rolling resistance Driving Mode Vehicle speed base or road data base less complexity vs real world reflection - Combination of few mode - Unique mode for each vehicle type Measurement Method Chassis dynamometer Should Chassis dynamometer measurement be used Simulation Should simulation be used Driver model contents - Common calculation logic - Difference of steady and transient Engine measurement Number of measurement points Transient operation effect - CO2 measurement by engine - Engine FE map and simulation Aero dynamic measurement Measurement methods Selection of vehicle type, rear body - Coast down, steady speed drive - CFD - Wind tunnel Tyre rolling resistance Measurement method, labeling - Common tyre measurement method - How to handle a number of axis Others Measurement method - Driveline drag, Auxiliary drag, etc Criteria Limit of FE value or average value - Averaged by number of sales - CAFÉ

Category for FE standard for Truck and Tractor in Japan

Category for FE standard for Bus in Japan

Overview of process to estimate FE value in Japan Fuel Consumption - JE05 mode - High-way mode Full Torque Curve Conversion & Calculation Program Gear ratio, Eff. Engine Gear ratio,Eff. Dia. T/M F/G, Tire Combined Fuel Consumption km/L Select GVW category Torque Nm Fuel flow L/h (Measured) - Half payload - Running resistance Engine speed rpm 13

JE05 is common for FE regulation and emission regulation Driving Cycle in City JE05 is common for FE regulation and emission regulation City 市街地 Highway 高速道路 Vehicle Speed (km/h) Next, I'll speak about the driving cycles. Heavy-duty vehicle are used in urban and intercity expressway. So, both driving cycle have to be examined. JE05 is representative as urban driving, so, JE05 is decided as urban driving cycle. Time(s) This mode was developed as typical City driving pattern in Japan when the rule making of New Long Term emission regulation. 14 14

Driving Cycle in Highway ・Constant speed 80km/h ・Tomei Express way with gradient Gradient % Therefore, 80km/h constant speed, limit speed of HDV, and grade simulated Tomei expressway is decided as intercity express driving cycle. Time s 15 15

Ratio of Highway mode for each category Vehicle type No. Max payloadd Ratio GVW（ｔ） （ｔ） (%) 1 ≦1.5 2 1.5＜＆≦2 3.5＜＆≦7.5 3 2＜＆≦3 4 3＜ 5 7.5＜＆≦8 - 10 6 8＜＆≦10 - Truck 7 10＜＆≦12 - 8 12＜＆≦14 - 9 14＜＆≦16 - 10 16＜＆≦20 - 11 20＜＆≦25 - 30 1 tractor-head GVW　≦20 20 Tractor 2 tractor-head GVW　20＜ 10 1 6＜＆≦8 2 8＜＆≦10 Route Bus 3 10＜＆≦12 4 12＜＆≦14 5 14＜＆≦16 1 3.5＜＆≦6 2 6＜＆≦8 General Bus 3 8＜＆≦10 10 4 10＜＆≦12 5 12＜＆≦14 6 14＜＆≦16 35 7 16＜＆≦20 16 16

Idea to determine by Top Runner Method using population with HV and conv. is adopted in PC but not fixed for HDV. Target is determined by population ratio Post 2015 FE Std. Improvement estimated based on technology 2015 FE Std. Conv. HV

Summary 2015FE standard Legislation of 2015 FE standard was completed in 2006. FE improvement target is almost 12% in average comparing 2002. Government supported by tax reduction incentives and subsidies. Technical feature of 2015FE in Japan Simulation based FE value determination. Vehicle categorize by GVW for truck and bus. Combination of emission certification mode and highway mode with weighting ratio for each vehicle type. Target was determined base on 'Top Runner Method'. FE items of engine, T/M and tire are included.