Tighter Environmental Regulations and R&D Burden
First written in FY2016. 7 of 13 entries say "Worsened", first in FY2018-Q2. Latest entry: FY2026.
Mitsubishi Motors moved to the "Worse" side of this theme in 2017, 7 years before the typical company in this theme (2024).
The whole theme swung hardest in 2026: 5 of 9 companies on the "Worse" side.
5 other companies' latest entry also says "Worsened".
- FY2026WorsenedAnnual report
「The automotive industry is facing structural changes in its business environment and heightened uncertainty, including higher U.S. tariffs, reviews of environmental regulations in various countries and regions, the accelerating adoption of software-defined vehicles (SDVs) and vehicle intelligence through AI, and intensifying sales competition due to the global expansion of Chinese manufacturers.」
In addition to the risks of development burdens arising from environmental regulations, electrification, and AI, SDVs, vehicle intelligence, and the global expansion of Chinese manufacturers have broadened the scope of structural change and uncertainty. - FY2026-H1MaterialisedAnnual report
「U.S. environmental credit impairment loss - 7,061」
An impairment loss of ¥7.061 billion on U.S. environmental credits was recognized as an extraordinary loss in the interim period. - FY2025WorsenedAnnual report
「As demands for automobiles, including vehicle intelligence, became more sophisticated, development man-hours increased, causing some delays in the launch of new models planned under the medium-term management plan.」
In addition to development competition and R&D burdens arising from electrification and AI, increased development man-hours associated with vehicle intelligence materialized as delays in launching new models. - FY2024WorsenedAnnual report
「In addition to electrification as a measure against global warming, technological advances such as AI and IoT are fundamentally changing the concept of the automobile, previously a means of transporting people and goods, and the automotive industry is entering a once-in-a-century period of major transformation.」
In addition to responding to environmental regulations, changes in the concept of the automobile, including AI and IoT, were described as a "once-in-a-century" transformation, further broadening the scope of changes in technology development and the competitive environment. - FY2020WorsenedAnnual report
「In addition to this unstable global environment, the automotive industry is entering a period of major transformation due to new technologies such as MaaS (Mobility as a Service) and CASE (Connected, Autonomous, Shared, Electric), as well as the tightening of environmental regulations worldwide.」
The company explicitly identified industry transformation, including responses to new technologies such as MaaS and CASE, in addition to environmental regulations, further expanding the scope of R&D and investment burdens and the competitive environment. - FY2019WorsenedAnnual report
「In addition to the negative impact of foreign exchange movements, investments in R&D for next-generation vehicles to address stringent environmental regulations and technological innovations known as CASE (Connected, Autonomous, Shared, Electric) have been increasing.」
In addition to responding to environmental regulations, adaptation to CASE technologies has increased R&D investment in next-generation vehicles, expanding the scope of fixed-cost burdens and factors weighing on earnings. - FY2018-Q2WorsenedAnnual report
「The automotive industry has entered an unprecedented era of major transformation, and development competition in areas including electrification, autonomous driving, and connectivity is expected to become completely different from the past in both quality and scale.」
In addition to conventional environmental regulatory requirements and R&D burdens, the company identified development competition involving electrification, autonomous driving, and connectivity as a risk undergoing major qualitative and quantitative change, expanding the scope of competition and development burdens. - FY2017RestatedAnnual report
「Environmental regulations are being tightened in both developed and emerging markets, and we also expect an increase in R&D expenses and capital expenditures for developing internal-combustion-engine vehicles that comply with these regulations and for enhancing the competitiveness of electric and plug-in hybrid vehicles.」
The company continues to point to tighter environmental regulations and the resulting increases in R&D expenses and capital expenditures for internal-combustion-engine vehicles and electric vehicles. - FY2017-Q2RestatedAnnual report
「Environmental regulations are expected to become more stringent in both developed and emerging markets. We also expect an increase in R&D expenses and capital expenditures for developing internal-combustion-engine vehicles that comply with environmental regulations and for enhancing the competitiveness of electric and plug-in hybrid vehicles.」
The company continues to point to tighter environmental regulations and increased R&D expenses and capital expenditures for internal-combustion-engine vehicles, electric vehicles, and plug-in hybrid vehicles. - FY2017-Q1RestatedAnnual report
「Further advances in R&D, longer development periods, and intensifying development competition are expected in the future. Specifically, environmental regulations are expected to become more stringent in both developed and emerging markets. We also expect an increase in R&D expenses and capital expenditures for developing internal-combustion-engine vehicles that comply with environmental regulations and for enhancing the competitiveness of electric and plug-in hybrid vehicles.」
The company continues to identify tighter environmental regulations and the resulting increases in R&D expenses and capital expenditures as business assumptions and risks. - FY2016First statedAnnual report
「Environmental regulations are expected to become more stringent in both developed and emerging markets. We also expect an increase in R&D expenses and capital expenditures for developing internal-combustion-engine vehicles that comply with environmental regulations and for enhancing the competitiveness of electric and plug-in hybrid vehicles.」
The company regards increases in R&D expenses, capital expenditures, and development time resulting from responses to tighter environmental regulations, electrification, active safety, and connected cars as business assumptions and risks.