Intensifying Competition in the Automotive Industry and Sales Promotion Expenses
First written in FY2016. 17 of 21 entries say "Worsened", first in FY2020-Q1. Latest entry: 2026-08-03.
Mitsubishi Motors moved to the "Worse" side of this theme in 2016, 7 years before the typical company in this theme (2023).
The whole theme swung hardest in 2025: 8 of 10 companies on the "Worse" side.
11 other companies' latest entry also says "Worsened".
- 2026-08-03WorsenedEarnings
「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 disclosure stated that market competition intensified alongside softer demand, indicating that difficult sales conditions continued. - FY2026WorsenedAnnual report
「Major changes occurred in rapid succession, including the impact of US tariffs, increased exports by Chinese manufacturers, and changes to environmental regulations in various countries, leaving the operating environment surrounding the Group one in which careful navigation remained necessary.」
Regarding the risk of intensifying competition, increased exports by Chinese manufacturers were explicitly identified as a new pressure, while US tariffs and changes to environmental regulations further intensified the challenging sales environment. - FY2026-H1WorsenedAnnual report
「Price competition, particularly from Chinese manufacturers, has intensified further, while geopolitical and macroeconomic uncertainty, including supply concerns against a backdrop of US-China tensions and economic stagnation, remains high.」
Regarding the competitive environment, it was stated that price competition, particularly from Chinese manufacturers, had intensified further, and that the sales environment remained challenging. - FY2025WorsenedAnnual report
「The easing of global vehicle supply constraints led to renewed intensification of sales competition, making the operating environment surrounding the Group increasingly difficult.」
Rather than being an improvement factor, the easing of vehicle supply constraints became a new earnings pressure through the renewed intensification of sales competition as competitors' supply recovered. - FY2025-H1WorsenedAnnual report
「In addition to intensifying competition as vehicle supplies increased across the industry, delayed macroeconomic recovery, mainly in Thailand and Indonesia, caused automotive demand to remain sluggish, and the sales environment surrounding the Company remains difficult.」
It was stated that intensifying competition as vehicle supplies increased and weak demand in Thailand and Indonesia continued to make the sales environment challenging. - FY2024WorsenedAnnual report
「During the second half of the fiscal year, inventory shortages caused by semiconductor shortages and other factors were largely resolved, and the competitive environment at the point of sale moved toward normalization. Meanwhile, in ASEAN, the region on which we are focused, total automotive demand declined sharply in some countries, leaving the operating environment surrounding the Group generally difficult.」
Easing supply constraints normalized the competitive environment, while total demand declined sharply in some ASEAN markets. Intensifying competition, weaker demand, and higher material and transportation costs continued to pressure earnings. - FY2024-Q3WorsenedAnnual report
「Production has largely normalized as supplies of semiconductors and other components have improved. Accordingly, the competitive environment is also moving toward normalization, and increases in competitors' incentives have become apparent.」
As supply constraints eased, the competitive environment moved toward normalization, and competitors' higher incentives became apparent. Pressure from sales promotion expenses and price competition has newly become more concrete. - FY2024-Q2WorsenedAnnual report
「Going forward, while carefully monitoring the risks of a recession accompanying higher interest rates and intensifying market competition as production recovers, we will maintain the strong sales momentum of the Outlander series and establish a shift toward sales that do not rely on incentives.」
The risks of a recession accompanying higher interest rates and intensifying market competition as production recovers were explicitly identified as new external pressures. The policy response is to shift toward sales that do not rely on incentives. - FY2024-Q1WorsenedAnnual report
「Signs of an economic slowdown against a backdrop of inflation and interest-rate increases aimed at containing inflation, as well as deteriorating consumer sentiment and declining purchasing power, have also been observed, and the pace of recovery from the COVID-19 pandemic remains uneven across regions.」
With respect to competitive and demand conditions, inflation, rising interest rates, an economic slowdown, deteriorating consumer sentiment, and declining purchasing power were cited as new pressures, along with uneven recovery across regions. - FY2023-Q3WorsenedAnnual report
「In addition to concerns over the economic impact of the Federal Reserve's rapid monetary tightening, the competitive environment has gradually intensified, with some manufacturers increasing incentives as inventories have normalized.」
Regarding the risk of intensifying competition, in addition to the economic impact of monetary tightening, competitors' higher incentives have been confirmed, increasing pressure from sales promotion expenses and price competition. - FY2023-Q2WorsenedAnnual report
「Although our sales of core models such as the Xpander, Triton, and Pajero Sport increased year on year, the overall competitive environment in the market has become more challenging as competitors have successively launched new vehicles.」
It was stated that sales of core models increased in ASEAN, while the overall competitive environment became even more challenging as competitors launched new vehicles. - FY2023-Q1WorsenedAnnual report
「Going forward, we need to closely monitor the risks of higher incentives and an economic slowdown resulting from falling used-vehicle prices and a sharp rise in interest rates.」
With respect to risks related to competition and sales promotion expenses, the potential for higher incentives and an economic slowdown triggered by falling used-vehicle prices and rising interest rates has newly become more concrete. - FY2022-Q1WorsenedAnnual report
「Meanwhile, in China and other markets, the overall market shifted from the sharp post-COVID recovery seen in the previous fiscal year to sluggish growth due to semiconductor shortages. In addition to broader market trends, we faced challenges such as declining store traffic, resulting in a difficult performance.」
In China and other markets, sluggish market growth due to semiconductor shortages coincided with declining store traffic, and sales totaled 21 thousand units, down 4 thousand units year on year. Competitive and demand conditions continued to deteriorate. - FY2020WorsenedAnnual report
「As a result, full-year retail sales were 1,127 thousand units, down 117 thousand units, or 9%, from the previous fiscal year.」
Against a backdrop of weak global demand, intensifying competition, and the impact of COVID-19, full-year retail sales declined 9% year on year, reflecting worsening competitive and demand conditions in actual results. - FY2020-Q1WorsenedAnnual report
「Since the end of last year, uncertainty over the economic outlook, including the US-China trade dispute, has increased further, and global automotive demand remains sluggish.」
It was stated that uncertainty over the economic outlook had increased due to factors including the US-China trade dispute, while global automotive demand remained sluggish. Weak demand in key markets has led to sluggish revenue growth and put downward pressure on earnings. - FY2017MaterialisedAnnual report
「Retail sales for the fiscal year totaled 926 thousand units, down 122 thousand units, or 12%, year on year.」
Sales volumes, including the impact of competitive and market conditions, declined 12% for the full year, while operating profit fell 96% year on year to ¥5.1 billion. - FY2017-Q3MaterialisedAnnual report
「Operating profit in North America was a loss of ¥1.3 billion, down ¥10.2 billion year on year, due mainly to higher selling expenses accompanying intensifying sales competition and increased market-action costs.」
Higher selling expenses accompanying intensifying sales competition were reflected in North America's ¥1.3 billion operating loss, newly quantifying the impact of intensifying competition risk. - FY2017-Q2MaterialisedAnnual report
「Meanwhile, sales in North Asia totaled 42 thousand units, down 11 thousand units, or 22%, year on year, as the lack of new products in China had reduced competitiveness.」
The decline in competitiveness and sales volumes caused by a shortage of new products in China was reflected in actual regional performance, making the impact of intensifying competition risk more concrete. - FY2016First statedAnnual report
「Competition in the automotive industry has intensified worldwide against a backdrop of excess production capacity and other factors, making sales incentives and effective advertising and promotional activities essential to promoting sales and maintaining market share amid price competition and other pressures.」
Excess production capacity, price competition, sales incentives, advertising and promotion, and shorter new-product development cycles are identified as competitive risks.