Thank you for joining us today. We will now begin Isuzu Motors Financial Results Briefing for the fiscal year ended March 2022. Today's briefing is held online due to prevention against COVID-19. Naoto Nakata, Senior Executive Officer, Deputy Division Executive of the Corporate Planning & Finance Division and Group Chief Financial Officer. Kenichi Asahara, Executive Officer, Division Executive of the Corporate Strategy Division. First, Mr. Nakata will explain the overall summary of the final results.
I am Nakata, Deputy Division Executive of the Corporate Planning & Finance Division. First, I will talk about our business overview. With regard to the financial results of fiscal year 2022, ended March 31st, 2022, although unit sales of CVs in Japan and LCVs in Thailand were significantly down due to semiconductor shortages, by shifting our production focus to vehicles for emerging markets, the negative impact was kept to a minimum.
On the profit and loss front, the earnings exceeded our expectations, thanks to improved sales model mix, decrease in costs and favorable FX rates. As for the full year outlook for fiscal year 2023, ending March 31st, 2023, the demand of both CVs and LCVs continues to be strong in overseas markets. Although we are faced with production constraints due to chip shortages, particularly impacting unit sales of CVs in Japan, with the stack of back orders, we're set to achieve a record high level of sales volume this year. Despite the negative impact from rising costs of materials and logistics, we aim to achieve an all-time high revenue and operating income of JPY 3 trillion and JPY 200 billion respectively, by driving our sales, promoting fixed cost cutting and leveraging benefits from foreign exchange.
Next, I will discuss the impact of supply chain disruptions on our business. Operations of Japanese factories are faced with a decrease in truck production, mainly for Japanese and North American markets. We expect it to go back to normal in the second half of fiscal year 2023, ending March 31st, 2023. On the other hand, we plan to suspend production for five days starting May 16, due to disruptions resulting from the lockdown in Shanghai. Operations of Thai factories are expected to maintain a high production level throughout fiscal year 2023, ending March 31st, 2023, since the semiconductor shortages have been resolved, except some specific components. We see the impact of the Shanghai lockdown as limited. I will discuss the financial results of fiscal year 2022, ended March 31st, 2022.
As for global sales units, unit sales of CVs for the Japanese market were lower than those of the previous fiscal year due to production constraints caused by chip shortages, while unit sales of overseas CVs and LCVs surpassed those of the previous fiscal year. The earnings are shown at the bottom half of the slide. We decided to increase the year-end dividend by JPY 8 from the previous projection of JPY 29, making the dividend JPY 37 per share. Together with the second quarter dividend of JPY 10, the total full year dividend amounted to JPY 66 per share. From here, I will talk about the forecast of sales volume and revenue of fiscal year 2023, ending March 31st, 2023. We project highest ever unit sales, surpassing the result of the previous fiscal year in every segment.
The forecast for the earnings is shown at the bottom half of the slide. Although the cost of materials and logistics are expected to continue to rise, we will strive to expand sales, strive for cost realization, and promote cost reduction activities. We plan to keep the full year dividend at JPY 66, which is the same as that of fiscal year 2022, ending March 31st, 2022. Next, I'll talk about the fiscal year 2022 CV global unit sales. The unit sales surpassed the pre-pandemic level of fiscal year 2020, ended March 31st, 2020, in many countries and regions. Now we focus on industry unit sales in Japan and our market share. The industry unit sales of both light-duty trucks and medium to heavy-duty trucks were down compared with the previous fiscal year due to production constraints.
We lost significant market share, particularly in the segment of light-duty trucks. Here is the fiscal year 2022 LCV global unit sales. Although production of new LCV models was affected by the semiconductor crisis in the first half, it was mostly addressed in the second half, resulting in unit sales which outperformed the pre-pandemic level of fiscal year 2020, ended March 31st, 2020. I will now move on to industry unit sales of LCVs in Thailand, our market share and production volume of LCVs in Thailand. Industry unit sales remained at the same level as the previous fiscal year due to production constraints, while we maintained a high market share of over 40%. The total production volume of LCVs in Thailand was significantly up as the semiconductor shortages eased off in the second half.
As for the industrial engine and after-sales business in fiscal year 2022, the shipments of industrial engines increased on a year-on-year basis. However, looking at the second half alone, the shipments fell from the previous year due to the slowdown in the demand of Chinese construction machinery and the inventory adjustment before the implementation of new emissions regulations. The sales of the after-sales business grew year-on-year, thanks to the part sales increase in overseas markets. The sales of UD Trucks recorded from April to December 2021 was included in our earnings. Next, I'll explain the analysis of the changes in operating income by comparing fiscal year 2021 and fiscal year 2022. The main factors of the increase came from the sales model mix, favorable FX and cost reduction activities.
On the other hand, the main factors of the decrease are attributed to the sharp increase in material and logistics costs. The figures in the red brackets indicate the forecast announced in February 2022. Comparing the updated results in the February forecast, operating income surpassed the forecast by JPY 17.2 billion because of an increase of JPY 6.5 billion in sales model mix and a decrease of JPY 8.2 billion in fixed costs. I will now explain the financial results beyond the operating income. As for ordinary income, a large FX gain due to the sharp weakening of the yen in the fiscal year-end was recorded.
In addition, in connection with the business dissolution of the diesel engine joint venture with General Motors in North America, a loss on valuation of investment securities of JPY 4.7 billion was recorded as an extraordinary loss. Now I'll talk about the business outlook of global unit sales in commercial vehicles in the fiscal year ending March 2023. The demand in global unit sales in CVs continues to be strong, both in Japan and overseas. Although production constraints still linger, we plan to resolve back orders and expect a record number of unit sales in fiscal year 2023. The outlook of industry unit sales in Japan for both mid to heavy-duty trucks and light-duty trucks has not been determined.
Turning to global unit sales in LCVs in fiscal year 2023, we expect to sell more LCV vehicles than the previous fiscal year in many regions, thanks to the easing of the chip shortage and the continuation of robust demands in our LCV markets. In the case of the Australian market, although demand continues to be strong, we expect a decrease in unit sales, partly due to the chip shortage. As for the outlook of industry sales and unit production in light of commercial vehicles in Thailand, industry LCV unit sales in Thailand in CY 2022 is expected not to reach 492,000 units, which was recorded in the pre-pandemic year of 2019. However, with the easing of production constraints, industry LCV unit sales in Thailand is expected to recover. We expect a record number of unit production in LCV in fiscal year 2023.
Next, I will turn to industrial engines and the after-sales business in fiscal year 2023. Even though the demand in Chinese construction machinery has slowed down, construction machinery makers are projected to increase their inventories of engines compliant to the new Chinese regulations. Therefore, the global shipment of industrial engines is expected to achieve the same level as the previous fiscal year. As for sales of the after-sales business, we forecast a sales increase because the full year revenue of UD Trucks will be included in our earnings, and also parts sales are expected to increase, mainly in overseas markets. I will now explain the change analysis of the full year outlook in operating income for the fiscal year ending March 2023.
Though the impact from the fluctuations in steel, oil prices, et cetera, will amount to more than JPY 100 billion, we aim to achieve an operating income of JPY 200 billion through record high unit sales, price realization, cost reduction activities, and even better FX. The changes in the financial figures beyond the operating income are as listed in the slide. That brings me to the end of my presentation. Thank you.
Next, Mr. Asahara will explain the progress of the Mid-Term Business Plan 2024.
Now I would like to explain the progress of the Mid-Term Business Plan we announced last May. Let me begin with an overview. The business environment has changed largely from the assumptions we had when we formulated the plan due to the factors such as semiconductor shortages, soaring raw material prices, and heightened geopolitical risks.
In response, we are taking steps to mitigate the impact of the factors, such as having flexible production, pushing forward cost reductions, and reviewing our product prices. Despite such circumstances, we are steadily implementing the mid and long-term measures set forth in our Mid-Term Business Plan. I'll explain the current status of each measure in detail later. Next, let me explain our financial targets. As for the fiscal year that ended March 31st, 2022, that is the first year of our Mid-Term Business Plan, we achieved our targets with net sales of JPY 2.5 trillion and operating income of JPY 187 billion. We are expecting that our sales will continue to grow. However, our profitability will have a hard time to grow due to soaring material costs and logistics costs.
Fighting against such circumstances, we haven't changed our Mid-Term financial targets set for the fiscal year ending March 31st, 2024. We'll achieve the Mid-Term financial targets by dealing with rapidly changing cost structure, materializing mutual synergy between UD Trucks and Isuzu, strengthening the LCV business, and launching the all-new light duty trucks in Japan. Next, I'd like to explain the individual measures in line with the three initiatives set forth in our Mid-Term Business Plan. The first initiative is expand the current businesses and improve their profitability. As a measure that contributes to our earnings during the Mid-Term Business Plan period, we are working to materialize mutual synergy between UD Trucks and Isuzu. While maintaining the UD brand, we are aiming to increase the sales of heavy-duty trucks under a multi-brand strategy.
As the first product of our collaboration with Volvo, we will introduce a new tractor unit to the market through both Isuzu and UD channels in 2023. Isuzu and UD Trucks are cooperating on the sales front as well. The domestic sales divisions of both companies were put together into our new headquarters, and the overseas sales divisions will also begin to work together soon. UD Trucks corporate strength is getting reinforced. As visible effects, they are achieving cost reductions through joint transportation and common parts purchasing with Isuzu, and the quality of products is being improved. Regarding our LCV business, the role sharing among our three global production bases has progressed. As for our Thai base, which is our mother plant, we have increased their producing capacity to 340,000 units per year, seeing that a new model has been well received by high-end users.
As for our Indian base, we are promoting localization of production regarding them as our export base for vehicles for workhorse applications. In addition, we are strengthening exports from them to the Middle East. As for our South African base, they have started production of a new model so that they are enjoying parallel production of the new model and the previous model now. We'll expand our LCV business by making maximum use of the three production bases. Next, let me touch upon our measures leading to our future earnings. We have started joint full model change development of the heavy-duty truck models by Isuzu and UD Trucks for the Japanese and other Asian markets, utilizing the alliance collaboration with the Volvo Group in the area of new technologies.
As for mid and light duty trucks, we are going to release all new models by the end of this fiscal year. Providing a wide range of variants, including battery electric ones, we will launch the all-new models first in Japan, followed by overseas rollouts through both Isuzu and UD channels. One of the features of these all new mid and light duty models is that we employed I-MACS in their development. I-MACS is our modular design concept that allows for a flexible product development in order to respond to various needs and power source types of each country and region. Let me move to the second initiative, axis of innovation. First, I would like to explain the status of our carbon neutrality strategy. We are implementing our measures for carbon neutrality in line with our initial assumptions.
The Japanese government embodied its green growth strategy last June and made clear the targets for Japanese commercial vehicles to achieve. We will continue to challenge carbon neutrality, aiming at achieving the clarified targets. I would like to tell you about our specific measures as shown on the next chart. As I mentioned earlier, we will launch a light duty battery electric truck model first in Japan within this fiscal year, and then in the U.S. and Europe. We will also launch a variant that can be driven by regular driver's license holders in Japan. In addition, we are developing a heavy-duty battery electric route bus model aiming at a launch in 2024. We launched the heavy-duty LNG powered truck model, GIGA LNG, last October, ahead of the other Japanese commercial vehicle manufacturers.
In addition, we are also engaged in advanced engineering and demonstration tests of light duty and heavy-duty fuel cell truck models, a heavy-duty fuel cell route bus model, an electric pickup model, and a mid duty battery electric truck model for the U.S. market. We will continue to examine the possibility of various technologies without narrowing our technology options. Next, I would like to talk about connected vehicles and autonomous driving. In the area of connected vehicle technology, we will begin offering a new connected service platform this October. The platform that integrates the services of Isuzu and Fujitsu is named Commercial Vehicle Connected Information Platform. In relation to this, UD Trucks will start an operational trial of the MIMAMORI Fleet Management service in January next year. In addition, through CJPT, we'll continue to promote linkage with a wide range of data platforms based on the Toyota Mobility Service Platform.
In the area of autonomous driving technology, we are planning to work on use cases, giving priority to those with higher labor-saving effects, higher safety and higher feasibility. We started a demonstration test of an autonomous driving bus at Fukuoka Airport. In addition, UD Trucks and Kobe Steel will begin a joint demonstration test of a Level four autonomous driving heavy-duty truck in a steelworks site. Finally, I would like to explain our third initiative, evolving the management from ESG perspectives. We are implementing various measures to change our management culture and promoting internal and external communication as sources of innovation. Last year, we began reforming our HR platform, having diversity as the concept. Through this reform, our human resources will be reinforced further. We are also engaged in various measures to promote communication within the automobile industry.
For example, we have an engineer exchange program with our alliance partners, and we are trying to increase our harmony with UD Trucks diversity. Last year, in collaboration with the Volvo Group, we kicked off Voice, a diversity and inclusion promotion activity in workplaces. Our headquarters has been relocated to Yokohama, where various industries gather. Taking advantage of this headquarters location, we will promote cross-industrial communication, and also we will enhance our communication with our overseas offices by utilizing the latest office facilities and IT environment. That's all. Thank you very much.
This is the end of Isuzu Motors Financial Results briefing for the fiscal year ended March 2022. Thank you for your participation.