Reliance on Overseas Sales and Conditions in Emerging Markets
First written in FY2016. 14 of 19 entries say "Worsened", first in FY2020. Latest entry: 2026-08-03.
Mitsubishi Motors moved to the "Worse" side of this theme in 2020, 1 year after the typical company in this theme (2019).
2 other companies' latest entry also says "Worsened".
- 2026-08-03WorsenedFinancial results
「In addition to heightened tensions in the Middle East, demand softened in the Middle East, ASEAN, Australia, and other markets, and market competition intensified, affected by persistently high fuel prices and rising interest rates.」
The overseas business environment was described as being simultaneously affected by heightened tensions in the Middle East, persistently high fuel prices, rising interest rates, and softer demand. - FY2026MaterialisedAnnual report
「Particularly since the beginning of 2026, geopolitical risks have come to the fore due to the worsening situation in the Middle East and other factors, and uncertainty has increased further.」
It was stated that geopolitical risks had materialized amid the worsening situation in the Middle East with respect to risks related to the overseas business and emerging-market conditions, and that uncertainty had increased. - FY2026-H1WorsenedAnnual report
「Uncertainty surrounding U.S. tariff policy has eased somewhat, and there have also been signs of a relaxation of environmental regulations. However, price competition, led by Chinese manufacturers, has intensified further, while geopolitical and macroeconomic uncertainty remains high due to supply concerns and economic stagnation stemming from tensions between the United States and China, among other factors.」
Risks surrounding the overseas business continued to include intensifying price competition, particularly from Chinese manufacturers, supply concerns, economic stagnation, and geopolitical and macroeconomic uncertainty. Global sales also totaled 384 thousand units. - FY2025WorsenedAnnual report
「During the current consolidated fiscal year, the operating environment surrounding the Group became more challenging, as the recovery in automotive demand in Thailand and Indonesia was delayed and sales competition intensified again following the easing of global vehicle supply constraints.」
Under a business structure dependent on overseas sales, delayed demand recovery in Thailand and Indonesia and intensified competition following the easing of supply constraints continued to create a challenging full-year operating environment. - FY2025-H1WorsenedAnnual report
「Looking ahead, the environment surrounding the Company is expected to remain difficult to view optimistically, due to delayed market recovery in ASEAN, political and economic volatility, and the impact of ongoing conflicts around the world.」
Risks surrounding overseas operations were specified as including delayed recovery in ASEAN, political and economic volatility, and conflicts around the world as future sources of uncertainty. - FY2024WorsenedAnnual report
「As a result, full-year global sales declined 2% year on year to 815 thousand units, while full-year net sales increased 13% year on year to ¥2,789.6 billion.」
Under a business structure dependent on overseas sales, global sales totaled 815 thousand units, down 2% year on year. Net sales increased, but the Company disclosed a challenging environment, including a significant decline in total automotive demand in parts of ASEAN. - FY2024-Q3WorsenedAnnual report
「Total demand in ASEAN countries remained below expectations against a backdrop of inflation, higher interest rates and stricter screening for automotive financing, among other factors, while price competition also intensified.」
Under a business structure dependent on overseas sales, inflation, higher interest rates and stricter screening for automotive financing emerged as factors behind weaker demand in ASEAN, with their impact appearing in the form of declining regional sales. - FY2024-Q2WorsenedAnnual report
「The first half of fiscal 2023 was marked by a challenging operating environment, including shortages of shipping capacity and semiconductors, declining total demand centered on ASEAN, and persistently high material costs caused by inflation.」
Under a business structure dependent on overseas sales, declining total demand centered on ASEAN, inflation, and shortages of shipping capacity and semiconductors occurred simultaneously, and the challenging environment surrounding overseas operations continued. - FY2022-Q3MitigatedAnnual report
「From the third quarter, restrictions on activities resulting from the spread of COVID-19 were gradually eased in each region. Meanwhile, production constraints caused by semiconductor shortages continued to affect the Company's sales. Against this backdrop, the Company has been promoting improvements in sales quality, and together with favorable foreign exchange movements, its earnings have improved significantly year on year.」
The environment surrounding the overseas-dependent business improved significantly year on year as activity restrictions were gradually eased in each region. However, production constraints caused by semiconductor shortages continued. - FY2022-Q2WorsenedAnnual report
「Although sales recovered to some extent from the sharp decline caused by the spread of COVID-19 in the previous fiscal year, the challenging external environment continued during the cumulative period of the first 2 quarters of the current fiscal year, with intermittent lockdowns repeatedly imposed mainly in ASEAN countries due to renewed infections and tight supply and demand caused by semiconductor shortages, affecting the Company's sales.」
Although sales recovered from the sharp decline in the previous fiscal year, the challenging external environment continued, with renewed infections, lockdowns in ASEAN and semiconductor shortages, and their impact on overseas operations persisted. - FY2022-Q1MitigatedAnnual report
「As a result, Group net sales totaled ¥431.9 billion, up ¥202.4 billion year on year, or 88%. Operating income improved significantly, owing to higher unit sales and an improved sales mix resulting from the new-model effect and other factors, as well as the effects of controlling selling expenses and cost reductions implemented from the previous fiscal year, reaching ¥10.6 billion, compared with an operating loss of ¥53.3 billion in the previous fiscal year.」
Under a business structure dependent on overseas sales, sales and earnings, which had declined sharply in the previous year, recovered. Net sales increased 88% year on year and operating income reached ¥10.6 billion. The impact of overseas demand risks on performance temporarily diminished. - FY2021-Q3WorsenedAnnual report
「In ASEAN, our main region, sales bottomed out in the first quarter, but the subsequent recovery has not reached the level anticipated by the Company at the beginning of the fiscal year. Sales in the region totaled 132 thousand units, down 100 thousand units year on year. As a result, global sales for the cumulative period of the first 3 quarters of the current fiscal year totaled 569 thousand units, down 307 thousand units year on year, or 35%.」
Under a business structure dependent on overseas sales, the recovery in ASEAN fell short of expectations at the beginning of the fiscal year, and global sales declined 35% year on year. While demand has partially recovered worldwide, recovery in the Company's main regions continues to lag. - FY2021-Q2WorsenedAnnual report
「As a result, global sales for the cumulative period of the first 2 quarters of the current fiscal year totaled 351 thousand units, down 241 thousand units year on year, or 41%.」
Under a business structure dependent on overseas sales, sales declined in all regions, including ASEAN, Australia and New Zealand, Japan, China and other markets, North America and Europe, resulting in a 41% year-on-year decline in global sales. - FY2021-Q1WorsenedAnnual report
「The main regional sales trends are as follows. Sales volumes declined in all regions due to the impact of restrictions on economic activity.」
Under a business structure dependent on overseas sales, sales volumes declined in all regions, including ASEAN, Australia and New Zealand, Japan, China and other markets, North America and Europe, with the risk of worsening demand worldwide becoming evident in actual results. - FY2020WorsenedAnnual report
「Overseas sales accounted for approximately 80% of the Group's consolidated net sales in the previous consolidated fiscal year, and the Group operates in Japan, ASEAN, Oceania, North America, Europe and other regions. If political, economic or social conditions in these regions change rapidly and automotive demand deteriorates significantly beyond the Company's assumptions, it may become difficult for the Group to achieve its management strategy and business plans, potentially having a material impact on its operating results or financial condition.」
Under a business structure dependent on overseas sales, worsening demand across regions and rapid changes in conditions, including the spread of COVID-19, emerged as risks affecting achievement of the management strategy and business plans. - FY2019-Q2RestatedAnnual report
「Overseas sales accounted for approximately 80% of the Group's consolidated net sales in the previous consolidated fiscal year. In addition to Japan, the Group operates in ASEAN, Oceania, North America, Europe and other regions. If political, economic or social conditions in these regions change rapidly and automotive demand deteriorates significantly beyond the Company's assumptions, it may become difficult for the Group to achieve its management strategy and business plans, potentially having a material impact on its operating results or financial condition.」
With overseas sales accounting for approximately 80% of total sales, the Company continues to identify the potential impact of economic and social conditions in ASEAN and other emerging-market countries as a risk. - FY2016First statedAnnual report
「Overseas sales accounted for approximately 80% of consolidated net sales for the current consolidated fiscal year. Changes in economic or social conditions in Japan, ASEAN countries, which will be central to the Group's future regional strategy, and other emerging-market countries could have a material impact on the Group's operating results or financial condition.」
With overseas sales accounting for approximately 80% of total sales, the Company identifies economic and social conditions, legal and tax systems, political conditions, infrastructure, human resources, terrorism and infectious diseases in ASEAN and other markets as risks.