Order Backlog and Sales Stagnation at New-Car Dealerships and Deteriorating Cash Flow
First written in FY2022. 6 of 9 entries say "Mitigated", first in FY2023. Latest entry: FY2025.
No other company in this theme has enough history to compare yet.
- FY2025MitigatedAnnual report
「Domestic availability of new vehicles has improved further, and delivery-time fluctuations have generally become smaller. Delivery times remain long for some popular models, but for many models they appear to be stabilizing or becoming shorter.」
The environment surrounding extended delivery times and order backlogs for new vehicle dealers is improving, with delivery times stabilizing or shortening for many models. However, extended delivery times remain for popular models. - FY2025-H1MitigatedAnnual report
「Except for some brands, delivery times for core models have also been returning to normal.」
The customer environment surrounding extended new vehicle delivery times and order backlogs has improved in some respects from the previous fiscal year as new vehicle supply conditions improve and delivery times normalize. - FY2024MitigatedAnnual report
「For new vehicle dealers, a certain portion of sales volumes consisted of fulfilling orders placed during the pandemic. Although they continued to struggle with extended new vehicle delivery times throughout the fiscal year and new orders were not necessarily favorable, it became clear that Japan's domestic automobile market had emerged from its worst period.」
Japan's domestic automobile market emerged from its worst period and order backlogs were worked through, while extended delivery times and weak new orders remained throughout the fiscal year. - FY2024-Q3MitigatedAnnual report
「Although the order backlog is gradually being worked down and delivery times and order restrictions are clearly easing, the timing of a return to normal sales activity before the period of extended delivery times remains unclear. Consequently, new installations of our flagship products, which serve as sales promotion tools, have been far more challenging than assumed, while development of products addressing automobile dealers’ needs has taken substantially longer than assumed to monetize.」
The customer environment has improved in some respects as back orders are being worked through and delivery and order restrictions are easing. However, popular models continue to have delivery times measured in years or remain unavailable for new orders, the timing of a return to normal sales remains unclear, and the environment for product adoption remains extremely difficult. - FY2024-Q2WorsenedAnnual report
「Our important customer group, new vehicle dealers, is continuing to work through back orders received during the period of extended new vehicle delivery times. Popular models continue to have delivery times measured in years or remain unavailable for new orders. The recovery in new vehicle sales does not mean a return to normal sales activities before delivery times lengthened, and the environment for new installations of our products, which serve as sales promotion tools, was more difficult than assumed at the beginning of the fiscal year.」
Although market volumes recovered, new vehicle dealers continued to work through back orders, while extended delivery times and order suspensions remained for popular models. Accordingly, the environment for normal sales activities and new installations of the company's products was more difficult than assumed at the beginning of the fiscal year. - FY2024-Q1MitigatedAnnual report
「Our important customer group, new vehicle dealers, is gradually resolving extended new vehicle delivery times and is in the process of working through its back orders.」
New vehicle dealers are gradually resolving extended delivery times and working through back orders, indicating some improvement from the previous fiscal year in the environment surrounding order backlogs and stagnant sales. - FY2023MitigatedAnnual report
「Although Japan's domestic automobile market has emerged from its worst period, it remains unclear whether the recovery trend is strong and when sales volumes will return to pre-pandemic levels. An environment that cannot be viewed optimistically continues.」
Japan's domestic automobile market is considered to have emerged from its worst period, and conditions have improved in some respects from the previous fiscal year. However, new vehicle delivery times remained extended throughout the fiscal year, and the timing of a return to pre-pandemic levels remains uncertain. - FY2023-Q3WorsenedAnnual report
「However, the timing of a return to pre-pandemic sales volumes remains uncertain. With reports of order suspensions emerging recently, the extremely difficult environment surrounding Japan's new vehicle sales market continues.」
Although signs of a market recovery have emerged, the timing of a return to pre-pandemic levels remains uncertain, and the difficult environment surrounding new vehicle dealers continues, including reports of order suspensions. - FY2022First statedAnnual report
「New vehicle dealers continue to face a situation in which they hold order backlogs but cannot generate sales, and the severe impact on their operating results and cash flow is expanding.」
The company identifies for the first time, as a standalone business-environment risk, the expanding impact on new vehicle dealers' operating results and cash flow of holding order backlogs without generating sales.