Medium-Term Management Plan “Challenge 2025”

「However, partly because of major changes in the external environment, some initiatives under “Challenge 2025” have not achieved the expected progress, and we regard updating our management strategy and strengthening our growth and earnings capabilities as important challenges. In light of this, our group announced a new medium- to long-term vision in May 2026, covering fiscal 2026 through the 2030s.」

「Although the outlook for fiscal 2025 is for some of the indicators targeted in the Medium-Term Business Plan to fall short of their targets, we will steadily implement these key initiatives while responding flexibly to changes in the environment, further strengthen our management foundation and lay the groundwork for future growth.」

「The first half of fiscal 2024 was marked by an environment with many destabilising factors, including the prolonged downturn in total automotive demand in Thailand and Indonesia and rising incentives in the United States. Nevertheless, while focusing on optimising production and inventory, we sequentially rolled out the new Triton and new Xforce in line with the plan.」

「1. Target sales of 1.1 million units and operating profit of ¥220 billion (operating margin of 7%) 2. Launch 16 models over the next 5 years, including 9 electrified vehicles 3. Further growth in the ASEAN and Oceania regions and improved profitability in other regions using products for ASEAN 4. Address advanced-technology markets, including North America and Europe, by leveraging alliances 5. Reduce greenhouse gas emissions to achieve carbon neutrality 6. Promote digitalisation and enter new business areas 7. Further strengthen collaboration with alliances, including mutual complementation of OEM products」

「Fiscal 2023 is the first year of the new medium-term management plan, “Challenge 2025,” and performance is progressing steadily to date. The consecutive launch of new products is gradually preparing us for the growth phase.」

「We also began launching the Delica Mini in May, the new Triton in July and the new Xforce in August, respectively, and preparations to enter the growth phase are progressing. In addition to changes in the macroeconomic environment, geopolitical risks are also expected to increase, making the business environment surrounding our company increasingly uncertain. By fully recognising these changes and risks while responding flexibly, we will steadily implement the initiatives set out in the new Medium-Term Business Plan “Challenge 2025,” one by one, toward sustainable growth.」

「Although the unstable business environment is expected to continue for the time being, we will use the new Triton and new compact SUV, which will be launched shortly in ASEAN, to build a solid growth platform in the region and increase sales volumes worldwide.」