As long as trucks keep running, the money keeps coming. The revenue mechanism of Isuzu Motors (7202)'s after-sales service that no one told you about

📊 Dividend Progress Board
Annual Dividend Received (After Tax): Approx. 820,000 yen | Goal: 1.2 million yen (100,000 yen/month)
Achievement Rate: Approx. 68% | Number of Holdings: 65 stocks
Target Stock: Isuzu Motors (7202)

① Reason for buying
The trigger was a story from an old colleague.
I had heard that a colleague's brother worked as a maintenance service technician for Isuzu. At that time, I suddenly wondered, "What kind of company is Isuzu?" and when I looked at their financial statements, I found that the revenue from their after-sales service business was larger than I had expected.
My first impression was, "This is a solid business model."
Since I didn't have any automotive-related stocks yet, I decided to purchase it as part of my industry diversification. The dividend yield at the time of purchase was over 3.5%. The conditions were sufficient.
Honestly, I didn't watch it much after purchasing. Now that I've looked into it again, I feel that my initial impression was not wrong.

② What kind of company is it? How do they make money?
Isuzu Motors does not make passenger cars. It is Japan's only truck-specialized manufacturer, focusing on commercial vehicles such as trucks and buses.
The sales composition is as follows:
・Vehicle Sales (Trucks/Buses): Approx. 72%
・After-sales Business: Approx. 25%
・Industrial Engines: Approx. 3%
I would like you to pay attention to the after-sales business. Trucks are not just finished once purchased; they require regular maintenance, repairs, and parts replacement to keep running. Moreover, because they are used in harsher environments than passenger cars, the maintenance frequency is high and expertise is required.
Once a customer buys an Isuzu truck, they continue to use the after-sales service for a long time. It is a revenue structure closer to continuous billing rather than a one-time sale.
This after-sales business has more than doubled its sales over the past 10 years, and for the fiscal year ending March 2026, it is expected to achieve the sales target of 600 billion yen, which was set for the fiscal year ending March 2027, one year ahead of schedule.
In addition, Isuzu is steadily making progress in responding to decarbonization. They have already deployed the EV truck "ELF EV," and joint development of fuel cell light-duty trucks with Toyota (scheduled to start production in fiscal year 2027) and entry into the North American EV truck market are also underway.

③ What I saw in the financial results
The financial results for the fiscal year ending March 2026 are as follows:
・Revenue: Approx. 3.3 trillion yen (+2.0% year-on-year)
・Net Income Forecast: Approx. 130 billion yen (-7.2% year-on-year)
・After-sales Sales: Full-year forecast revised upward by 10 billion yen
Honestly, I am concerned that the net income forecast is slightly lower. However, the after-sales business is performing well and sales are steadily growing, so I feel it is important to separate temporary profit adjustments from the growth of the after-sales service.
The demand for trucks that support logistics, construction, agriculture, and infrastructure will not disappear as long as companies continue their business. I have judged that the essential competitiveness of the business has not changed.

④ How are the dividends?
The dividend trend (per share) is as follows:
・2022: 58 yen ・2023: 74 yen ・2024: 92 yen ・2025: 92 yen (maintained) ・2026 forecast: 94 yen (+2 yen increase from previous year)
There was a temporary dividend cut after COVID-19, but since then, they have been steadily increasing dividends. The current dividend yield is approximately 4.23% (as of May 2026), which meets the high dividend criteria of 3.5% or more.
The dividend increase is small, but I think the structure allows for maintaining or increasing dividends even if business performance fluctuates somewhat, thanks to the stable revenue base of after-sales service.

⑤ Risks
・The fact that net income is expected to decrease slightly by 7.2% year-on-year requires continued attention. ・Truck demand has a side that is easily affected by economic downturns and decreases in logistics volume. ・The upfront investment phase for EVs and fuel cells will continue for a while. ・The dividend increase is small, and significant dividend growth is difficult to expect in the short term.

⑥ Current conclusion
Continue holding ◎ Buy more ○
I don't think there are many companies that have all three: a continuous revenue model called after-sales service, the barrier to entry of being a truck specialist, and steady response to decarbonization.
It was a connection that started from a story from an old colleague, but when I looked into it again, it was a stock that I felt "glad I bought."
I want to actively buy more during stock price declines.It has changed from "holding it for no reason" to "holding it with conviction."

⑦ One point to look at for this stock next (November 2026)
If I were to look at just one thing, it would be:Whether the sales growth of the after-sales business is continuingVehicle sales are easily influenced by the economy, but after-sales service is continuous revenue from existing customers. As long as this business is growing steadily, I can judge that Isuzu's revenue base is stable. I will check the progress of after-sales sales in the next interim financial results.

⑧ Summary
Isuzu Motors was a company that looked plain but was actually solid.
Concentration on being a truck specialist, continuous revenue from after-sales service, and investment in the future called decarbonization. I think a business model that combines these three is suitable for long-term holding.
Do you have any automotive or logistics-related stocks in your portfolio? From the perspective of industry diversification, please take a look at it.

Reference link IRBANK financial results page: https://irbank.net/E02143/results
Isuzu Motors IR: https://www.isuzu.co.jp/company/investor/

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📌 This stock is part of the "Reviewing all my holdings" series.

Not just dividend yield, but

"How are they making money?"
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I am reviewing my holdings one by one while thinking about these.

👉 Click here for the "Reviewing all my holdings" magazine

Currently holding 65 stocks with an annual dividend of approximately 850,000 yen.

I am aiming for an annual dividend of 1.2 million yen (100,000 yen per month) while reviewing my current holdings and searching for new companies.

I am still on the way to reaching 100,000 yen per month.

If you would like to follow along with the rest of this journey, I would be happy if you followed me.