TAIPEI (Taiwan News) — Hotai Motor said Thursday it will invest NT$10 billion (US$317 million) to acquire majority stakes in five Hino Motors dealerships in Japan, marking its first entry into the Japanese market.

The investment will be carried out in two phases, with Hotai acquiring 80% stakes in five Hino subsidiaries for roughly NT$5.48 billion, per CNA. The deal is expected to close on April 1 and is the company’s biggest overseas investment to date.

Hotai will also spend up to NT$4.52 billion to acquire property for South Kanto Hino locations in Tokyo and surrounding areas, further strengthening its footprint in the region, per UDN.

The five target companies operate 53 sales locations with over 3,000 employees, selling about 12,000 vehicles annually, over 30% of Hino’s domestic sales. Hotai aims to leverage the network to adapt to the Japanese market.

Hotai will finance the investment primarily through internal funds, supplemented by external financing. Experienced executives at Hotai affiliate Chang Yuan Motor Co., Ltd. will be stationed in Japan, with the new management company, Hotai Japan Co., Ltd., overseeing local operations.

The move follows an agreement signed in June among Daimler Truck, Mitsubishi Fuso, Hino, and Toyota. Under the agreement, Toyota and Daimler Truck formed a holding company to oversee Hino and Mitsubishi Fuso, while Hino agreed to transfer five commercial vehicle dealerships to Hotai for management.