Recession in Major Markets and Shrinking Automotive Demand
First written in FY2016. 10 of 35 entries say "Materialised", first in FY2018-Q1. Latest entry: 2026-07-30.
Chuo Spring moved to the "Worse" side of this theme in 2017, 2 years before the typical company in this theme (2019).
The whole theme swung hardest in 2019: 36 of 67 companies on the "Worse" side.
14 other companies' latest entry also says "Worsened".
- 2026-07-30WorsenedEarnings
「Lower demand due to the economic slowdown in China, intensified competition with local Chinese OEMs, and lower production volumes due to the deterioration of the situation in the Middle East」
Lower demand and intensified competition in China, together with lower production volumes resulting from the deteriorating situation in the Middle East, materialized as risks related to demand and operating conditions in key markets. - FY2026-H1MitigatedAnnual report
「During the interim consolidated accounting period, net sales to major customers in Japan increased due to higher shipments of the new stabilizer product, ODDS, and the resolution of the impact of production stoppages at some customers in the previous year. Overseas net sales also increased in every region, more than offsetting the impact of the stronger yen, resulting in an increase in global net sales overall.」
Higher automotive production at major customers and the resolution of the impact of production stoppages increased domestic and overseas net sales, mitigating the impact of shrinking demand in major markets during the interim period. - FY2025MaterialisedAnnual report
「Overseas operations declined across all regions, including China, North America and Asia, but net sales increased globally overall.」
The decline in automotive production at major customers actually appeared as lower sales across overseas regions, including China, North America and Asia. However, higher domestic sales resulted in an increase in global net sales. - FY2025-H1Updated impact of the overseas decline and domestic production suspensionsAnnual report
「Overseas operations declined across all regions, including China, North America and Asia, but increased globally overall.」
The decline in automotive production at major customers in China, North America and Asia appeared as a decrease in overseas net sales, while the increase in Japan led to an overall increase globally. - FY2024Updated market impact from the domestic recovery, the overseas slowdown and partial shipment suspensionsAnnual report
「During the consolidated fiscal year, automobile production volumes by major customers increased in Japan as production recovered on firm demand throughout the year, despite the impact of shipment suspensions by some customers in the fourth quarter. Overseas, China and Asia were affected by intensifying sales competition and an economic slowdown, but global production increased.」
The domestic market recovered, while intensified sales competition and the economic slowdown continued in China and Asia. The shipment suspension by some customers in the fourth quarter is also described as an actual impact of market risk on results. - FY2024-Q3Updated market trends reflecting the domestic recovery and economic slowdown in China and AsiaAnnual report
「During the cumulative third quarter, automobile production volumes by major customers increased in Japan as production recovered on firm demand, and also increased overseas in China and Asia despite the impact of intensifying sales competition and an economic slowdown, resulting in higher global sales.」
Domestic automotive production recovered, while intensified sales competition and the economic slowdown continued in China and Asia. Overseas production increased, but the impact of market conditions continues to differ by region. - FY2024-Q2Updated market impact from the domestic recovery and deterioration in the Chinese marketAnnual report
「During the cumulative second quarter, automobile production volumes by major customers increased in Japan due to recovering demand. Overseas, growth overall was limited, partly due to an economic downturn in the Chinese market, but global production increased, driven by growth in Japan.」
Automotive demand and production recovered in Japan, but the increase overseas overall was limited by the economic downturn in China. The impact of economic conditions and the risk of shrinking demand is emerging differently by region. - FY2024-Q1MitigatedAnnual report
「During the cumulative first quarter, automobile production volumes by major customers increased both in Japan and overseas from the same quarter of the previous year, as production adjustments due to semiconductor shortages and other factors eased and markets recovered as the impact of COVID-19 diminished.」
The impact of shrinking automotive production and demand due to the semiconductor shortage and the pandemic eased, and automotive production volumes at major customers in Japan and overseas exceeded those of the same period of the previous year, according to the company. - FY2023Updated annual impact of lower domestic and Chinese production and flat overall productionAnnual report
「During the consolidated fiscal year, automobile production volumes related to the Group's business were approximately the same as in the previous year overall. In Japan, production adjustments due to semiconductor shortages and other factors continued, while overseas production in Asia remained strong, although a sharp production cut in China from the latter half of the third quarter had an impact.」
Production adjustments in Japan due to the semiconductor shortage and a sharp production decline in China actually occurred, but strong performance in Asia kept the group's total production volume at approximately the previous year's level. - FY2023-Q3Updated market impact from lower domestic production and higher overseas productionAnnual report
「During the cumulative third quarter, automobile production volumes related to the Company's business declined in Japan from the same quarter of the previous year as major customers continued to adjust production, mainly due to shortages of semiconductors and other components. Overseas, production volumes increased in Asia and China, leaving the Group overall at approximately the same level as the previous year.」
While the decline in domestic production continued, higher production in China and Asia offset it, leaving the group's total automotive production at approximately the previous year's level. The risks of shrinking demand and production in major markets are emerging differently by region. - FY2023-Q2Updated market impact from lower domestic production and higher overseas productionAnnual report
「During the cumulative second quarter, automobile production volumes in Japan declined from the same quarter of the previous year as major customers suspended factory operations and adjusted production, mainly due to shortages of semiconductors and other components resulting from the spread of COVID-19. Overseas, automobile production volumes in China and Asia increased, leaving the Group overall at almost the same level as the previous year.」
While the decline in domestic automotive production continued, higher production in China and Asia left the group total at approximately the same level as the previous year. Demand and production trends in major markets are affecting the operating environment differently by region. - FY2023-Q1WorsenedAnnual report
「During the first quarter of the fiscal year, automotive production volumes declined from the same quarter of the previous year as major customers successively adjusted production and suspended plant operations due to the impact of COVID-19, while production cuts at overseas plants resulting from lockdowns in China also occurred. Of the decrease in net sales, approximately ¥2.1 billion reflected the pass-through of higher steel prices and the impact of foreign exchange movements, among other factors. In real terms, the decline in automotive production volumes at major customers resulted in a ¥2.1 billion decrease in net sales.」
The decline in automotive production in major markets materialized as a result of COVID-19, customer plant shutdowns and lockdowns in China, and was effectively a ¥2.1 billion factor behind the decrease in net sales. - FY2022MitigatedAnnual report
「Automobile production by the Group's major customers during the consolidated fiscal year fluctuated substantially due to the impact of COVID-19, but was substantially higher than in the previous fiscal year.」
Automotive production volumes at major customers significantly exceeded those of the previous fiscal year, partially mitigating the impact on results from shrinking automotive demand compared with the previous fiscal year. - FY2022-Q3MitigatedAnnual report
「As automotive production and sales volumes at major customers increased from the previous fiscal year, which was affected by COVID-19, net sales were ¥60.245 billion, up 12.3% year on year.」
Automotive production and sales at major customers increased compared with the previous fiscal year, which was affected by the pandemic, and consolidated net sales also rose 12.3% year on year. This indicates that the impact of the risk of shrinking demand was partially mitigated. - FY2022-Q2MitigatedAnnual report
「As automotive production and sales volumes by major customers increased from the previous fiscal year, which was affected by the novel coronavirus pandemic, revenue was ¥29,027 million, up 17.8% from the same quarter of the previous year, and operating income was ¥1,029 million, compared with an operating loss of ¥21 million in the same quarter of the previous year.」
Automotive production and sales by major customers increased from the previous fiscal year, and domestic and overseas revenue recovered. The impact of economic and automotive demand contraction was partially mitigated, but earnings remain under pressure from higher steel and logistics costs. - FY2022-Q1MitigatedAnnual report
「During the cumulative first quarter, automobile production and sales volumes by major customers recovered as markets recovered from COVID-19, with sales of passenger cars and kei cars increasing steadily in Japan and sales increasing at all overseas operations.」
The recovery of markets from the novel coronavirus pandemic increased automotive production and sales by major customers, as well as domestic and overseas revenue, partially mitigating the impact of the weaker-demand risk, according to the Company. - FY2021WorsenedAnnual report
「Automobile production and sales volumes by the Group's major customers were substantially below the previous consolidated fiscal year in all regions except China, due to the global spread of COVID-19.」
Although the Company described a recovery trend as of the third quarter, for the full fiscal year, automotive production and sales by major customers excluding China fell significantly below the previous fiscal year, and the impact of weaker demand appeared in the full-year results. - FY2021-Q3MitigatedAnnual report
「During the cumulative third quarter, the global spread of COVID-19 resulted in a substantial year-on-year decline in automobile production and sales volumes, but during the most recent 3 months of the third quarter, these recovered to almost the same level as the previous year, and cumulative consolidated earnings turned positive.」
Although the cumulative decline in automotive production and sales continued, the most recent 3 months of the third quarter recovered to around the previous year's level, and cumulative results also turned profitable, according to the Company. - FY2021-Q2WorsenedAnnual report
「As sales declined because major customers temporarily suspended operations amid the spread of the infectious disease, revenue was ¥2,311 million, down 35.7% from the same quarter of the previous year, and the operating loss was ¥352 million, compared with an operating loss of ¥268 million in the same quarter of the previous year.」
The suspension of operations by major customers amid the spread of the novel coronavirus caused North American revenue to decline 35.7% from the same quarter of the previous year, while the operating loss also widened from the previous year. The impact of weaker automotive demand and production on regional performance has worsened. - FY2021-Q1WorsenedAnnual report
「[Japan] As sales declined because major customers temporarily suspended operations, revenue was ¥10,271 million, down 35.2% from the same quarter of the previous year, and the operating result was an operating loss of ¥694 million, compared with operating income of ¥984 million in the same quarter of the previous year.」
The suspension of operations by major customers resulted in lower sales and operating losses in Japan, North America and Asia, extending the impact of weaker market demand to regional performance. - FY2021-Q1WorsenedAnnual report
「Against this backdrop, the Group's revenue for the cumulative first-quarter period was ¥12,773 million, a decrease of ¥8,111 million, or 38.8%, from the same quarter of the previous year.」
The sharp decline in automotive production and sales caused by the novel coronavirus resulted in revenue down 38.8% year on year. The impact of weaker demand in key markets has been further quantified. - FY2020WorsenedAnnual report
「Overseas operations declined, primarily because of the global spread of the novel coronavirus during the fourth quarter.」
In addition to the existing risks of economic downturns in key markets and weaker automotive demand, the spread of the novel coronavirus led to an actual decline in overseas automotive production. - FY2020-Q3WorsenedAnnual report
「[North America] Due to lower demand for control cables, revenue was ¥5,293 million, down 12.3% year on year, and the operating loss increased to ¥374 million from an operating loss of ¥136 million in the same quarter of the previous year.」
The decline in demand for control cables in North America continued, resulting in revenue down 12.3% year on year. The operating loss also widened from ¥136 million to ¥374 million, indicating a worsening impact from weaker demand in a key market. - FY2020-Q2WorsenedAnnual report
「[North America] Due to lower demand for control cables, revenue was ¥3,595 million, down 12.8% year on year, and the operating result deteriorated from operating income of ¥12 million in the same period of the previous year to an operating loss of ¥268 million.」
The decline in demand for control cables in North America continued, resulting in revenue down 12.8% year on year, while the operating result deteriorated from profit in the same period of the previous year to a loss of ¥268.467 million. - FY2020-Q1MaterialisedAnnual report
「[North America] Due to lower demand for control cables, revenue was ¥1,902 million, down 10.9% year on year, and the operating result deteriorated from operating income of ¥380,000 in the same period of the previous year to an operating loss of ¥10.8 million.」
Demand for control cables declined in North America, resulting in revenue down 10.9% year on year, while the operating result deteriorated from a profit of ¥380,000 to a loss of ¥108 million. This has been updated as an example of weaker demand in a key market affecting regional performance. - FY2019MaterialisedAnnual report
「[North America] Due mainly to lower customer production volumes, revenue was ¥7,886 million, down 7.4% year on year, and the operating result deteriorated from operating income of ¥126 million in the same period of the previous year to an operating loss of ¥277 million.」
The decline in customer production volumes continued in North America, resulting in revenue down 7.4% year on year, while the operating result deteriorated from a profit of ¥126 million to a loss of ¥277 million. - FY2019-Q3MaterialisedAnnual report
「[North America] Partly due to lower demand for control cables, revenue was ¥6,039 million, down 4.7% year on year, and the operating result deteriorated from operating income of ¥12 million in the same period of the previous year to an operating loss of ¥136 million.」
Demand for control cables declined in North America, resulting in revenue down 4.7% year on year, while the operating result deteriorated from a profit of ¥12 million to a loss of ¥136.84 million. - FY2019-Q2MaterialisedAnnual report
「[North America] Partly due to lower demand for control cables, revenue was ¥4,122 million, down 5.6% year on year, and operating income was ¥12 million, down 74.1%.」
Demand for control cables declined in North America, resulting in revenue down 5.6% year on year and operating income down 74.1%. This has been updated as an example of weaker demand in a key market affecting regional performance. - FY2019-Q1MaterialisedAnnual report
「[North America] In addition to lower demand for control cables and the impact of the stronger yen on foreign-currency translation, revenue was ¥2,134 million, down 11.8% year on year, and operating income was ¥0 million, down 99.7%.」
Demand for control cables declined in North America, resulting in revenue down 11.8% year on year and operating income down 99.7%. This has been updated as an example of weaker demand in a key market affecting regional performance. - FY2018MaterialisedAnnual report
「[North America] Despite the impact of the weaker yen on foreign-currency translation and other factors, lower customer production volumes resulted in revenue of ¥8,513 million, down 10.9% year on year, and operating income of ¥126 million, down 76.4%.」
Customer production volumes declined in North America, resulting in revenue down 10.9% year on year and operating income down 76.4%. - FY2018-Q3MaterialisedAnnual report
「[North America] Despite the impact of the weaker yen on foreign-currency translation and other factors, lower customer production volumes resulted in revenue of ¥6,340 million, down 8.4% year on year, and operating income of ¥12 million, down 97.0%.」
The decline in customer production volumes continued in North America, with revenue down 8.4% year on year and operating income down 97.0%. This has been updated as an example of automotive production and demand trends in a key market affecting regional performance. - FY2018-Q2MaterialisedAnnual report
「[North America] Despite the impact of the weaker yen on foreign-currency translation and other factors, lower customer production volumes resulted in revenue of ¥4,368 million, down 5.7% year on year, and operating income of ¥47 million, down 83.1%.」
In North America, customer production volumes declined, resulting in revenue down 5.7% year on year and operating income down 83.1%. This has been updated as an example of weaker automotive demand and production affecting regional performance. - FY2018-Q1MaterialisedAnnual report
「Overseas revenue exceeded the level in the same quarter of the previous year, as sales in China offset declines in Taiwan, where exports to the Middle East decreased, and the United States, where demand for cables declined.」
In the overseas business, Taiwan's lower exports to the Middle East and the decline in US demand for cables resulted in actual sales decreases. Sales in China, however, offset these declines. - FY2017Added indirect effects from the regions where competitors manufactureAnnual report
「Demand for automotive-related products, which accounts for most of the Group's worldwide operating revenue, is affected by the economic conditions of individual countries and regions. Accordingly, economic downturns and the resulting contraction in demand in the Group's key markets, including Japan, North America, China and Asia, could adversely affect the Group's operating results and financial position. The Group may also be indirectly affected by economic conditions in the regions where its competitors manufacture products.」
In addition to the risks of economic downturns and weaker demand in key markets, the Company explicitly identifies indirect effects from economic conditions in regions where competitors manufacture products. - FY2016First statedAnnual report
「Demand for automotive-related products, which accounts for most of the Group's worldwide operating revenue, is affected by the economic conditions of individual countries and regions. Accordingly, economic downturns and the resulting contraction in demand in the Group's key markets, including Japan, North America, China and Asia, could adversely affect the Group's operating results and financial position.」
Given its dependence on automotive-related demand, the Group identifies economic downturns and weaker demand in Japan, North America, China and Asia as risks.