Fluctuations in Automotive-Related Markets

「China continues to maintain the world's largest scale of production and sales, led by new energy vehicles (NEVs), while sales of conventional internal combustion engine vehicles (ICEs) remain sluggish. Japanese OEMs continue to face challenging conditions, including being forced to respond to changes in the market structure and price competition.」

「In the automotive industry to which our Group belongs, the impact of production stoppages and certification-related issues previously seen at some automakers in Japan eased, although slight constraints on parts procurement and logistics remained. In Thailand, domestic demand showed some recovery, but total production declined slightly from the same period of the previous year due to lower exports. In China, as demand for new-energy vehicles continued to expand, automotive sales and production both remained above the level of the same period of the previous year, with the progress of electrification continuing to drive industry growth.」

「In the automotive industry to which our Group belongs, Japan continued to be affected by production stoppages due to certification fraud and quality issues at some automakers. Thailand's market remained sluggish and difficult due to tighter auto-loan screening associated with high household debt. In China, production in the first half declined as new-model launches were concentrated in the second half of 2024, but domestic sales and exports of new-energy vehicles remained strong.」

「In China, production of new-energy vehicles exceeded that of the previous year and remained strong due to government sales-promotion measures and other factors. Meanwhile, Japanese automakers remained in difficult conditions as their production declined markedly due to delays in responding to the rapidly growing new-energy vehicle market. In Thailand, demand for automobiles declined amid high household debt, tighter loan screening and other factors, resulting in lower production.」

「In the automotive industry to which our Group belongs, production and sales in China exceeded those of the same quarter of the previous year and the market remained strong, due to the extension of government sales-promotion measures, including tax reductions and subsidies for vehicle purchases, and the concentration of new-model launches, including new-energy vehicles. However, sales by Japanese automakers, our major customers, declined, and adverse conditions continued. In Thailand, both production and sales were below those of the same quarter of the previous year due to factors including lower purchasing power resulting from higher interest rates, and difficult conditions continued. In Japan, despite the effects of production stoppages at some automakers, production, sales and exports exceeded those of the same quarter of the previous year as semiconductor supply shortages eased, and the market remained firm.」

「In Thailand, exports to Asian markets increased, but domestic sales fell below those of the same quarter of the previous year as tighter auto-loan screening amid rising interest rates continued to weigh on the market. In China, although the decline in sales by Japanese automakers was marked, both sales and production, particularly of new-energy vehicles, exceeded those of the same quarter of the previous year and remained firm due to sales-promotion policies and a succession of new-model launches. In Japan, the market maintained gradual growth, with sales exceeding those of the same quarter of the previous year as semiconductor supply shortages eased.」

「In Japan, the market continued to grow gradually, with both production and sales exceeding those of the same quarter of the previous year as the domestic economy recovered and semiconductor shortages eased. However, semiconductor shortages had not been fully resolved, and unstable conditions continued, including ongoing delivery delays for some vehicle models.」

「In the automotive industry to which our Group belongs, Thailand's production and sales exceeded those of the same quarter of the previous year, and the market performed well, supported by the recovery of the domestic economy under the 'with-COVID' approach and the easing of semiconductor shortages. In China, the new-energy vehicle market remained strong and the market was showing signs of recovery, supported by the government's continued expansion of consumption-stimulation measures. In Japan, the market was recovering as semiconductor shortages eased, but conditions remained unstable as production and sales had yet to reach pre-novel-coronavirus levels.」

「In the automotive industry to which our Group belongs, Thailand's production and sales exceeded those of the same quarter of the previous year, driven by expanding domestic demand as activity restrictions were eased, despite the impact of parts-supply shortages, particularly semiconductors, on products for export. In China, production and sales declined sharply due to semiconductor shortages and strict activity restrictions implemented in connection with the Shanghai lockdown, resulting in extremely difficult conditions. In Japan, parts-supply shortages were gradually easing, but production had not yet recovered and sales remained sluggish, leaving conditions unstable.」

「In Thailand, domestic production increased, but production for export declined due to parts-supply shortages caused by the worsening situation in Ukraine, and unstable market conditions continued. In China, the new-energy vehicle market remained strong, but market recovery slowed as production and sales remained at roughly the same level as in the same quarter of the previous year due to activity restrictions following an increase in new infections and the impact of semiconductor shortages. In Japan, conditions remained difficult as automakers successively cut production due to parts-supply shortages caused by the Shanghai lockdown.」

「In Thailand, market conditions were showing signs of recovery as restrictions on activities were eased following a decline in new infections and developed economies returned to normal, but the outlook remained uncertain due to many destabilizing factors, including the renewed spread of infections caused by variants and surging raw-material prices. In China, the new-energy vehicle market remained strong, but the market continued to be unstable due to the significant impact of semiconductor shortages and surging raw-material prices. In Japan, production had continued to recover after the state of emergency was lifted in October, but the renewed spread of infections caused by variants from 2022 onward led automakers to suspend plant operations successively, and conditions remained difficult as production declined from the previous year.」

「In the automotive industry to which our Group belongs, Thailand was showing signs of recovery as restrictions on activities were eased following a decline in new infections, particularly for products for export, but production declined from the same quarter of the previous year and difficult conditions continued. In China, the new-energy vehicle market remained strong, but the impact of semiconductor and power shortages remained significant, and conditions were difficult as both production and sales declined from the same quarter of the previous year. In Japan, shortages of semiconductors and parts caused by the spread of infections in Southeast Asia were gradually improving, but production had not yet recovered and difficult conditions continued.」

「In the automotive industry to which our Group belongs, production in Thailand was showing signs of recovery from the same quarter of the previous year, but the outlook remained uncertain due to the renewed spread of infections caused by variants and delays in vaccinations. In China, although the market was affected by semiconductor shortages and surging raw-material prices, conditions remained strong, supported by the government's consumption-stimulation measures, and the new-energy vehicle market grew. However, concerns over power restrictions associated with tighter environmental regulations remained, leaving the outlook uncertain. In Japan, conditions remained difficult as automakers successively cut production due to semiconductor shortages and parts-supply shortages caused by the spread of infections in Southeast Asia.」

「In the automotive industry to which our Group belongs, Thailand had emerged from the bottom of the deterioration caused by tighter auto loans, the spread of the novel coronavirus and other factors, but production had not yet recovered. In China, automotive sales remained strong, particularly for new-energy vehicles, following the expansion of the government's ongoing consumption-stimulation measures. In Japan, automakers' production recovered and market conditions gradually began to improve, but uncertainty remained due to customers' production adjustments caused by semiconductor supply shortages and other factors.」

「In the automotive industry to which our Group belongs, automakers in Thailand resumed operations and production began to recover, but sales declined due to the novel coronavirus and lower demand. In China, the automotive market was recovering, particularly for commercial vehicles, SUVs and new-energy vehicles, supported by infrastructure-investment and consumption-promotion policies, but sales declined from the same quarter of the previous year. In Japan, sales were showing signs of recovery as demand recovered, but declined from the same quarter of the previous year.」

「In the automotive industry to which our Group belongs, sales in Thailand declined as major automakers temporarily suspended operations in response to the novel coronavirus and lower demand. In China, the automotive market was recovering as the government promoted support measures, but sales declined due to the impact of the novel coronavirus in the first quarter and lower demand in overseas markets. In Japan, demand was showing signs of recovery, but sales remained below the level of the same quarter of the previous year.」

「In the automotive industry to which our Group belongs, sales in Thailand declined due to the economic slowdown caused by the U.S.-China trade friction, tighter auto-loan regulations imposed by financial institutions and the spread of the novel coronavirus. In China, production was gradually resuming, but demand had not yet recovered fully. In Japan, domestic new-vehicle sales declined as automakers implemented measures to prevent infections, including suspending production, and consumers' willingness to purchase declined because of requests to refrain from going out.」

「In Thailand, exports declined due to the global economic slowdown caused by the U.S.-China trade friction, while the effects of tighter auto-loan regulations imposed by financial institutions and other factors persisted, leading to lower domestic new-vehicle sales. In China, new-vehicle sales declined due to the U.S.-China trade friction and reductions in new-energy vehicle subsidies, although Japanese brands maintained strong sales. In Japan, new-vehicle sales of both registered vehicles and kei cars declined due to the negative effects of the consumption-tax increase and the novel coronavirus.」

「In the automotive industry to which our Group belongs, exports from Thailand remained sluggish due to the global economic slowdown caused by the U.S.-China trade friction, while domestic new-vehicle sales also declined as a result of flooding and tighter auto-loan standards imposed by financial institutions. In China, SUVs remained popular, but new-vehicle sales declined due to the prolonged U.S.-China trade friction and revisions to subsidy criteria for purchases of new-energy vehicles.」

「In the automotive industry to which our Group belongs, Thailand saw lower exports to Oceania, Africa and Central and South America, but domestic sales increased, leaving domestic automotive production in Thailand at almost the same level as the previous year. In China, new-vehicle sales remained sluggish amid the economic slowdown and trade issues with the United States, although Japanese automakers that launched new models recorded strong sales. In Japan, domestic new-vehicle sales continued to perform steadily, helped by the launch of new models and the front-loaded demand ahead of the consumption-tax increase.」

「In the automotive industry to which our Group belongs, new-vehicle sales in Thailand remained firm as automakers launched new models. In China, production and sales of new-energy vehicles remained firm, but gasoline-vehicle sales declined overall, led by a marked decrease in passenger-car sales. In Japan, sales remained firm, supported by strong SUV (sport utility vehicle) sales and the launch of new kei-car models, and domestic new-vehicle sales recovered gradually.」

「In the automotive industry to which our Group belongs, new-vehicle sales in Thailand remained strong, as sales of large buses and pickup trucks grew against a backdrop of robust tourism and agriculture, despite lower production for Europe and the Middle East. In China, sales of SUVs (sport utility vehicles) by Japanese automakers remained strong, but sales growth slowed as consumers held back from purchasing U.S.-brand vehicles due to the U.S.-China trade friction. In Japan, domestic new-vehicle sales continued to perform steadily as the decline in sales caused by the final-inspection issue that emerged last year began to recover, in addition to the effects of new-model and facelift launches.」

「In China, although growth in SUV (sport utility vehicle) sales slowed, passenger cars, which had been declining in recent years, began to recover, and production and sales of new-energy vehicles remained firm, supported by the government's proactive measures. In Japan, although compact cars remained sluggish due to fewer new-model launches, sales of kei cars equipped with an expanded range of models featuring advanced driver-assistance systems remained firm, and domestic new-vehicle sales continued to perform steadily.」

「In China, the growth rate of demand has declined and sales growth has slowed following the end of tax reductions for small cars at the end of last year, although development of new energy vehicles, particularly EVs, is thriving. In Japan, sales of kei cars remained firm due to enhanced safety equipment and other factors, but domestic new vehicle sales have slowed as the impact of new models among popular standard and small cars has subsided.」

「In the automotive industry to which the Group belongs, exports in Thailand are showing signs of recovery and domestic vehicle sales remain strong. In China, production and sales of passenger cars have increased, while exports also remain strong. In Japan, domestic vehicle sales, led by kei cars, have increased, and overall new vehicle sales have remained firm.」

「Although new vehicle sales in Japan have remained firm in recent years, replacement demand is expected to decline going forward, creating an uncertain outlook.」

「The Group depends on automotive-related markets for most of its revenue. Accordingly, fluctuations in automotive-related markets due to economic conditions and other factors may affect the Group's financial position, operating results and cash flows.」

「The Group depends on automotive-related markets for most of its revenue. Accordingly, fluctuations in automotive-related markets due to economic conditions and other factors may affect the Group's financial position, operating results and cash flows.」

「In the automotive industry to which the Group belongs, demand in the United States is firm due to an economic recovery and substantial discounts, among other factors. In Thailand, exports are a drag on conditions, but the market remains resilient due to stable domestic sales. In China, demand has increased due to rush demand ahead of the end of the halving of the vehicle acquisition tax on small cars implemented since the previous fiscal year. In Japan, the deterioration in the overall export environment and weak sales of kei cars continue to have a substantial impact.」

「In the automotive industry to which the Group belongs, the United States has an environment supporting sales through a stable labor market and low interest rates, although demand is gradually weakening as the increase in new vehicle sales reaches a peak. In Thailand, the positive effects of an economic recovery resulting from increased government spending are beginning to emerge gradually in the automotive industry. In China, demand for new vehicles is increasing due to the halving of the vehicle acquisition tax on small cars implemented since last year, while in Japan demand remains sluggish due to the impact of a fuel-economy fraud issue and higher taxes on kei cars, among other factors.」

「The Group depends on automotive-related markets for most of its revenue.」