Demand Decline from the Overseas Relocation and Domestic Restructuring of the Automotive Industry
First written in FY2016. 9 of 35 entries say "Restated". Latest entry: 2026-07-31.
Kunimine Industries moved to the "Worse" side of this theme in 2025.
2 other companies' latest entry also says "Mitigated".
- 2026-07-31MitigatedFinancial results
「Revenue increased mainly because demand related to passenger cars and trucks remained firm.」
Firm demand related to automobiles and trucks resulted in higher revenue in the fabricated materials field. This does not indicate that the risks have disappeared, but that their impact on demand eased during the quarter. - FY2026WorsenedAnnual report
「Against the global trend toward decarbonisation, domestic automobile production is expected to decline, while the shift from fossil-fuel vehicles to EVs is expected to reduce the number of cast components. As a result, demand for bentonite for domestic foundries is expected to decline, making it an issue to address the future contraction of the domestic market.」
The risk of declining demand in the automotive industry was explicitly identified, citing not only lower domestic production volumes but also a decline in the number of cast components associated with the shift to EVs and the future contraction of the domestic market. - 2026-05-08WorsenedFinancial results
「Industrial production showed some signs of recovery, although the automotive industry, a core sector, was affected by lower exports to the United States due to the impact of the Trump tariffs and upward pressure on costs.」
The company identifies new sources of uncertainty and demand risk in the automotive industry, including lower exports to the United States and tariffs. - FY2026-H1WorsenedAnnual report
「Industrial production saw a smaller-than-expected impact from the US Trump administration's tariff policies on production volumes in the core automotive industry, although demand declined in some industrial machinery segments, including construction equipment. The impact of the US Trump administration's tariff policies on the automotive industry is expected going forward, resulting in an uncertain outlook.」
Demand actually declined in some industrial machinery segments, including construction equipment, while the impact of US tariff policies on the automotive industry emerged as a new uncertainty factor. - FY2025WorsenedAnnual report
「Industrial production has shown some recovery in the core automotive industry due to easing semiconductor shortages and increased production capacity. However, production volumes have remained sluggish because of compliance issues at major manufacturers and a focus on locally produced BEVs in the Chinese market, resulting in a difficult outlook.」
Regarding demand risks for automotive production, compliance issues at major manufacturers and a focus on locally produced BEVs in the Chinese market were cited in addition to the previous shift toward EVs and other factors. The disclosure explicitly states that production volumes remain sluggish and the outlook is difficult. - FY2025-H1MaterialisedAnnual report
「The advanced materials business posted a slight decline in revenue, mainly due to production cuts at major customers serving the construction equipment and truck markets.」
Production cuts at major customers serving the construction equipment and truck markets materialized as lower revenue in the advanced materials business, indicating that production decline risks in the automotive and transportation equipment industries have emerged. - FY2024-Q3MitigatedAnnual report
「The advanced materials business posted a substantial increase in revenue as a result of the effects of price revisions pursued since the previous fiscal year.」
The recovery in automotive production and the effects of price revisions resulted in a substantial increase in revenue in the advanced materials business, mitigating the impact of short-term demand risks from declining production in the automotive industry. - FY2024-Q1MitigatedAnnual report
「The advanced materials business posted a substantial increase in revenue, supported by a recovery trend in domestic automotive production volumes and the effects of price revisions pursued since the previous fiscal year.」
Domestic automotive production volumes are on a recovery trend, and the advanced materials business posted a substantial increase in revenue. The short-term demand risk from structural changes and declining production in the automotive industry has been partially mitigated. - FY2023MaterialisedAnnual report
「Although sales volumes in the foundry-related business declined due to production stoppages and other factors at automakers caused by semiconductor shortages, the business posted higher revenue as a result of efforts to revise prices.」
While production stoppages at automakers due to semiconductor shortages actually caused sales volumes to decline, price revisions resulted in higher revenue in the foundry-related business. - FY2023-Q3RestatedAnnual report
「Although sales volumes in the foundry-related business declined due to production stoppages and other factors at automakers caused by semiconductor shortages, the business posted higher revenue as a result of efforts to revise prices.」
While production stoppages at automakers due to semiconductor shortages reduced sales volumes, price revisions resulted in higher revenue in the foundry-related business, with short-term automotive production risks coexisting with the effects of pricing measures. - FY2023-Q2Production stoppages due to semiconductor shortages coexist with the impact of price revisionsAnnual report
「Although sales volumes in the foundry-related business declined due to production stoppages and other factors at automakers caused by semiconductor shortages, the business posted a slight increase in revenue as a result of efforts to revise prices.」
While production stoppages at automakers due to semiconductor shortages appeared as lower sales volumes, price revisions resulted in a slight increase in revenue in the foundry-related business. - FY2023-Q1MaterialisedAnnual report
「Although sales volumes in the foundry-related business declined due to production stoppages and other factors at automakers caused by semiconductor shortages, the business posted a slight increase in revenue as a result of efforts to revise prices.」
Production stoppages at automakers caused by semiconductor shortages actually occurred and appeared as a decline in sales volumes for foundry applications. - FY2022-Q3Production adjustments amid semiconductor shortages, but demand remains firmAnnual report
「Industrial production has already recovered to pre-pandemic levels, but production adjustments due to semiconductor supply shortages have occurred, particularly in the automotive industry, and the outlook remains difficult to predict. Under these circumstances, among the Group's major customers, the foundry industry performed steadily, particularly in automotive and construction equipment-related areas.」
While production adjustments by automakers due to semiconductor supply shortages have actually occurred, demand for castings related to automobiles and construction equipment is described as remaining firm. - FY2022-Q2RestatedAnnual report
「The foundry-related business posted a substantial increase in revenue, as domestic automotive production volumes were somewhat affected by semiconductor supply shortages but remained on a recovery trend from the previous fiscal year.」
Although the impact of semiconductor supply shortages remains, domestic automotive production volumes continue to recover and the foundry-related business posted a substantial increase in revenue. The Company reconfirms that the impact of short-term risks from declining automotive production has been partially mitigated. - FY2022-Q1MitigatedAnnual report
「The foundry-related business posted a substantial increase in revenue, as domestic automotive production volumes were somewhat affected by semiconductor supply shortages but remained on a recovery trend from the previous fiscal year.」
Although the impact of semiconductor supply shortages remains, domestic automotive production volumes continue to recover and the foundry-related business posted a substantial increase in revenue. The impact of short-term risks from declining automotive production was partially mitigated. - FY2021WorsenedAnnual report
「The main customers for foundry-grade bentonite are in the automotive industry. However, the automotive industry is entering a once-in-a-century period of transformation, and the acceleration of initiatives addressing CASE—Connected, Autonomous/Automated, Shared and Electric—and the shift to EVs pose a risk of declining bentonite sales that could affect business performance.」
Risk recognition has become more specific and intensified, shifting from the previous risks of overseas relocation of automotive production bases and domestic restructuring to a once-in-a-century period of transformation involving CASE initiatives and the accelerated shift to EVs. - FY2021-Q3Automotive production recovery coexists with concerns over semiconductor shortagesAnnual report
「Industrial production has shown signs of recovery, including a recovery in automotive production volumes, following substantial production cuts caused by declines in domestic and overseas demand and supply chain disruptions associated with factory shutdowns worldwide. However, concerns remain about production adjustments by automakers due to semiconductor shortages, and the situation continues to be uncertain.」
Automotive production is on a recovery trend following substantial production cuts, while concerns over production adjustments due to semiconductor shortages have been newly cited, leaving uncertainty in the demand environment. - FY2021-Q2MitigatedAnnual report
「Under these circumstances, among the Group's major customers, the foundry industry showed signs of recovery as domestic automotive production volumes recovered, but the substantial production cuts through the April-June quarter had an impact, resulting in extremely difficult conditions.」
Domestic automotive production volumes showed signs of recovery, partially mitigating the demand reduction risk. However, the impact of substantial production cuts in the April-June quarter remained, and conditions were described as extremely difficult. - FY2021-Q1MaterialisedAnnual report
「The foundry-related business posted a substantial decline in revenue, as domestic automotive production volumes fell sharply and sales of construction equipment, including export-oriented sales, continued to decline.」
The sharp decline in domestic automotive production volumes and the decline in export-oriented sales of construction equipment materialized as a substantial decline in revenue in the foundry-related business. - FY2020MaterialisedAnnual report
「The foundry-related business posted lower revenue, as domestic automotive production volumes showed a downward trend toward the second half and the Company's sales of construction equipment, mainly for export, declined.」
In addition to the downward trend in domestic automotive production, declining export-oriented sales of construction equipment materialized as lower revenue in the foundry-related business. - FY2020-Q3MaterialisedAnnual report
「The foundry-related business posted lower revenue. Domestic automotive production remained firm, but sales of construction equipment, mainly for export, declined.」
While domestic automotive production remained firm, declining export-oriented sales of construction equipment materialized as lower revenue in the foundry-related business, indicating that demand reduction risks are affecting performance. - FY2020-Q2RestatedAnnual report
「Among the Company's major customers, the foundry industry has benefited from firm domestic automotive production, while construction equipment and other products for export have continued to decline,」
The Company reconfirms its recognition that domestic automotive production remains firm, while export-oriented demand for construction equipment and other products continues to decline. - FY2020-Q1New recognition of declining demand for construction equipment and other products for exportAnnual report
「Among the Company's major customers, the foundry industry has benefited from firm domestic automotive production, while construction equipment and other products for export have continued to decline,」
While domestic automotive production remains firm, the Company states that export-oriented demand for construction equipment and other products continues to decline, specifying the areas of risk for foundry-related demand. - FY2019WorsenedAnnual report
「In the bentonite business, domestic automotive production volumes, including vehicles for export, have remained firm in the foundry-related market. However, there are concerns that domestic production volumes may decline due to changes in the industry structure, including EVs, FCVs and car sharing, while the civil engineering and construction market is also exposed to intense competition, raising concerns about deteriorating profitability.」
While indicating that domestic automotive production remains firm, the Company identifies changes in the industry structure driven by EVs, FCVs, car sharing and other factors as a specific new concern for declining demand. - FY2019-Q3RestatedAnnual report
「The foundry-related business posted higher revenue, supported by the continued strength of domestic automotive production volumes, including passenger cars.」
Domestic automotive production volumes were described as remaining strong, and the demand risk from declining production in Japan's automotive industry continued not to materialize. - FY2019-Q2RestatedAnnual report
「The foundry industry has benefited from strong domestic automotive production volumes,」
Domestic automotive production volumes continued to perform strongly, and the demand risk from declining production in Japan's automotive industry remained mitigated, as in the previous quarter. - FY2019-Q1MitigatedAnnual report
「The foundry-related business posted higher revenue, driven by the upward trend in domestic automotive production volumes, including passenger cars.」
Domestic automotive production volumes were described as trending upward, and the demand risk from declining production in Japan's automotive industry remained mitigated. - FY2018-Q3RestatedAnnual report
「The foundry-related business posted a substantial increase in revenue, driven by the upward trend in domestic automotive production volumes, including commercial vehicles.」
Domestic automotive production volumes are trending upward, and the demand environment for the foundry-related business continues to improve. - FY2018-Q2RestatedAnnual report
「Domestic automotive production volumes, including commercial vehicles, have remained strong,」
The demand environment for the foundry-related business continues to improve against a backdrop of strong domestic automotive production volumes. - FY2018-Q1MitigatedAnnual report
「The foundry-related business posted a substantial increase in revenue, driven by the upward trend in domestic automotive production volumes, including commercial vehicles.」
The description changed from a decline or recovery trend in domestic automotive production volumes to an upward trend, and the foundry-related business posted a substantial increase in revenue. - FY2017MitigatedAnnual report
「The foundry-related business posted higher revenue, supported by a recovery trend in domestic automotive production volumes, including commercial vehicles, and by sales in Thailand.」
Domestic automotive production volumes were described as being on a recovery trend, and sales in Thailand also contributed to higher revenue in the foundry-related business. However, uncertainty surrounding overseas relocation remains. - FY2017-Q3MitigatedAnnual report
「The foundry-related business posted higher revenue, supported by a recovery trend in domestic automotive production volumes, including commercial vehicles, and by sales in Thailand.」
The description changed from a decline in domestic automotive production volumes to a recovery trend for the cumulative period of the current quarter, and the foundry-related business posted higher revenue. - FY2017-Q2RestatedAnnual report
「The foundry-related business posted higher revenue, as sales in Thailand offset the decline in domestic automotive production volumes, including commercial vehicles.」
While domestic automotive production volumes continued to decline, sales in Thailand offset the impact and the foundry-related business posted higher revenue. - FY2017-Q1RestatedAnnual report
「The foundry-related business posted higher revenue, as sales in Thailand offset the decline in domestic automotive production volumes, including commercial vehicles.」
The Company reconfirmed that domestic automotive production volumes continued to decline, but sales in Thailand offset the impact and the foundry-related business posted higher revenue. - FY2016First statedAnnual report
「The main customers for foundry-grade bentonite are automakers, but the automotive industry is facing rapid changes amid advancing globalization and consolidation. As a result, production bases may be relocated overseas and domestic plants may be closed, consolidated or otherwise reorganized, creating a risk of lower bentonite sales and potentially affecting business performance.」
The Company continues to recognize the decline in domestic automotive production volumes as a challenging business environment this fiscal year.