Risk of Structural Changes in the Automotive Industry Driven by CASE, Environmental Regulations and Supply Chain Disruptions

「Factors include lower consumer purchasing intent due to higher prices and new-vehicle sales prices, as well as company-specific factors affecting manufacturers, such as supply shortages caused by order-allocation limits for popular models and longer model cycles.」

「Sales of new passenger cars, comprising registered vehicles and kei cars, declined 2.2% from the previous fiscal year, falling below the previous year's level for the first time in 4 years and resulting in a market with a pronounced sense of stagnation.」

「On the demand side, domestic passenger-car new-vehicle registrations fell 1.9% from the same period of the previous year, due in part to cooling consumer sentiment resulting from rising prices and higher vehicle prices. Concerns about the economy are intensifying, and the outlook remains cautious. Meanwhile, passenger-car used-vehicle registrations increased 0.6% and were almost flat, but concerns about renewed difficulty in sourcing vehicles have been growing in the used-vehicle market.」

「The business environment surrounding the Group remains uncertain due to structural changes across the automotive industry, advances in technological innovation, tighter environmental regulations and fluctuations in demand in the used-car market. In particular, the adoption of CASE-related technologies (connected, autonomous, shared and electric mobility), supply chain fluctuations and instability in the supply of components such as semiconductors could directly affect the Company's business.」