Stagnant domestic demand and intensifying global competition

「建設機械業界において、低迷していた需要が国内外で回復に向かい、底堅く推移しました。」

「Looking at trends among our Group's sources of demand, the construction equipment industry, where demand had been sluggish, showed signs of recovery from the second half onward, but conditions remained lacking in strength. In the automotive industry, some manufacturers showed signs of production adjustments due to a review of production structures against the backdrop of US tariff policies, as well as constraints on the supply of components.」

「需要が低迷していた建設機械業界では、下期以降持ち直しの動きが見られたものの、力強さを欠く状況が続きました。」

「During the interim consolidated accounting period, demand declined in the construction equipment, industrial machinery and machine tool industries, which are major sources of demand for our Group, due to the deterioration in the global economy. The previously firm automotive industry was also affected by weak sales at certain manufacturers in North America and declining commercial vehicle production in Japan and Southeast Asia.」

「During the nine-month period ended 31 December 2023, production in the automotive industry, a major source of demand for our Group, recovered from the same period of the previous year, partly because shortages of semiconductors and other components eased. Meanwhile, demand in the construction equipment industry declined sharply from the second half, while demand in the industrial machinery and machine tool industries also continued to decline, significantly affected by the deterioration in China's economy.」

「Meanwhile, demand in the construction equipment industry has declined amid concerns over an economic slowdown, while the industrial machinery and machine tool industries have also been significantly affected by the deterioration in China's economy, with order adjustments continuing.」

「Meanwhile, in the construction equipment industry, demand remained firm through the previous fiscal year, but signs of inventory adjustments have recently emerged.」

「Over the medium to long term, the Company may also be affected by changes in the demand structure resulting from the development of EVs and CASE.」

「In the automotive industry, production volumes recovered despite the impact of the Shanghai lockdown and prolonged shortages of semiconductors and other components. In the construction equipment industry, demand remained firm.」

「In the automotive industry, production continued to recover, although it was affected by the Shanghai lockdown and prolonged shortages of semiconductors and other components. Meanwhile, demand in the construction equipment industry remained strong.」

「During the first quarter of the fiscal year under review (April 2022 to June 2022), automotive production improved, particularly in North America, compared with the previous year, when semiconductor shortages had a significant impact on production cuts. However, production cuts continued due to the Shanghai lockdown and supply chain disruptions caused by shortages of semiconductors and other components, and the outlook remained uncertain.」

「In the automotive industry, domestic and overseas demand was recovering, but the prolonged semiconductor supply shortage continued to affect new-vehicle sales, which remained depressed. Meanwhile, demand in the construction equipment industry, which had recovered sharply from the second half of the previous fiscal year, remained strong.」

「During the first quarter of the fiscal year under review (April 2021 to June 2021), recovery progressed in the business environment surrounding the Group, despite concerns about a resurgence in novel coronavirus infections and semiconductor shortages.」

「Although economic activity continued to show signs of recovery, concerns remained about the impact of a resurgence in infections and semiconductor shortages, and the outlook continued to be uncertain.」

「Although economic activity showed gradual signs of recovery, concerns remained about the impact of a resurgence in infections, and the outlook continued to be uncertain.」

「During the second quarter of the fiscal year under review (April 2020 to September 2020), the business environment surrounding the Group deteriorated significantly due to the spread of the novel coronavirus. In the automotive industry, temporary production suspensions by manufacturers and a sharp decline in demand led to a substantial drop in new-vehicle sales worldwide. Although demand was recovering in China and North America and signs of a recovery were emerging in Japan, recovery was delayed in Southeast Asia and Europe, and the outlook remained uncertain. In the construction equipment, industrial machinery and machine tool industries, demand declined substantially due not only to sluggish demand at domestic manufacturers caused by the U.S.-China trade friction since the previous fiscal year, but also to the significant impact of the contraction in economic activity caused by the novel coronavirus.」

「During the first quarter of the fiscal year under review (April 2020 to June 2020), the business environment surrounding the Group deteriorated significantly due to the spread of the novel coronavirus. In the automotive industry, temporary production suspensions by manufacturers and a sharp decline in demand led to a substantial drop in new-vehicle sales worldwide. In the construction equipment, industrial machinery and machine tool industries, demand declined substantially due not only to the sluggish demand at domestic manufacturers caused by the U.S.-China trade friction since the previous fiscal year, but also to the significant impact of the contraction in economic activity caused by the novel coronavirus.」

「A slowdown in the global economy is a concern due to the worldwide decline in demand and the downturn in production activity caused by the spread of the novel coronavirus.」

「During the second quarter of the fiscal year under review (April 2019 to September 2019), domestic automotive conditions remained firm, but overseas production volumes declined in North America, China, Southeast Asia and Europe due to the impact of the U.S.-China trade friction and other factors. In the construction equipment industry, production by major domestic customers declined and inventory adjustments were observed, while demand remained sluggish in parts of Southeast Asia, including Indonesia. Demand in both domestic and overseas markets also declined substantially in the industrial machinery and machine tool industries, leaving the timing of recovery uncertain.」

「During the first quarter of the fiscal year under review (April 2019 to June 2019), domestic conditions in the automotive industry remained firm, while unit sales in China and North America declined due to the effects of an economic slowdown. In the construction equipment and commercial vehicle industries, signs of weakening demand emerged in parts of Southeast Asia, including China and Indonesia.」

「In the construction equipment industry, domestic demand recovered from the decline following rush demand ahead of emissions regulations, while overseas demand remained firm, centered on strong demand in Europe, North America and Asia. In the automotive industry, domestic demand was driven by sales of light vehicles, while overseas demand remained firm, particularly in North America and Southeast Asia, despite concerns about the widening U.S.-China trade friction and the resulting slowdown in the Chinese economy.」

「In the automotive industry, domestic demand was driven by sales of light vehicles and remained firm. Overseas demand also remained strong, mainly in Europe, North America and Southeast Asia, although concerns were raised about U.S. additional tariff policies and the widening U.S.-China trade friction.」

「The business environment surrounding the Group is characterized by limited prospects for growth in domestic demand, accelerating overseas expansion by customers, and intensifying competition as globalization advances.」

「During the second quarter of the fiscal year under review (April 2017 to September 2017), in the construction equipment industry, domestic demand remained supported by rush demand ahead of emissions regulations, while overseas demand, particularly in China and Southeast Asia, remained strong. In the automotive industry, sales of light and compact vehicles recovered, while exports, mainly to Europe and North America, remained firm.」

「The business environment surrounding the Group is characterized by limited prospects for growth in domestic demand, accelerating overseas expansion by customers, and intensifying competition as globalization advances.」

「During the third quarter of the fiscal year under review (April 2016 to December 2016), conditions in the construction equipment industry remained severe, although signs of improvement emerged in North America and China. In the automotive industry, North America remained firm, while domestic sales continued to be sluggish.」

「During the second quarter of the fiscal year under review (April 2016 to September 2016), demand in the construction equipment industry remained weak, although signs of bottoming out emerged, amid a continued appreciation of the yen. In the automotive industry, North America remained firm, while domestic unit sales declined due in part to the impact of last year's increase in the light-vehicle tax.」

「During the first quarter of the fiscal year under review (April 2016 to June 2016), the business environment surrounding the Group was affected by an appreciation of the yen. Demand in the construction equipment industry remained sluggish, including in Japan and China. In the automotive industry, North America remained firm, but domestic unit sales declined due in part to the prolonged impact of a decline following last year's increase in the light-vehicle tax.」

「With no growth in domestic demand expected going forward, customers are accelerating their expansion overseas, and competition is expected to intensify as globalization advances.」