Changes in automotive demand and economic conditions worldwide

「一方で、米国の通商政策の影響が継続したことに加え、中東情勢の緊迫化や金融資本市場の変動など、先行き不透明な状況が続いています。」

「The uncertain outlook continued, reflecting the ongoing impact of U.S. trade policy, rising tensions in the Middle East, and volatility in financial and capital markets. By region, the U.S. economy remained resilient, while manufacturing continued to stagnate in Europe. In China, the property market continued to adjust and domestic demand remained weak, resulting in divergent conditions across regions.」

「一方で、米国の関税政策の影響が自動車産業を中心に継続していることに加え、中東情勢の緊迫化に伴う原油価格の変動など、不確実性の高い状況が続いています。地域別では、米国は堅調な労働市場に支えられ底堅く推移した一方、欧州では製造業の低迷が長期化し、中国では不動産市況の調整が継続するなど、地域ごとに濃淡のある展開となりました。」

「Against a backdrop of international developments and volatility in financial and capital markets, the global economy is entering a new era of heightened uncertainty as it shifts towards a multipolar phase in which trends diverge by region.」

「However, in addition to the impact of US trade policy becoming apparent, particularly in the automotive industry, rising uncertainty in international affairs has caused the overall pace of growth to slow.」

「More recently, heightened geopolitical risks and the introduction of new US tariff policies have become sources of disruption for the global economy.」

「In the automotive industry, HEV sales remained strong in the United States, while unit sales declined in China and the euro area amid a highly competitive market environment.」

「In China, expectations for an economic recovery grew, but its pace was slow, while instability in the property sector and slowing exports constrained economic growth. In the United States, rising interest rates resulting from monetary tightening raised concerns as a downside risk to economic growth, but the economy continued to expand throughout the year and sustained growth amid a robust labour market.」

「During the cumulative third quarter of the fiscal year (1 April 2023 to 31 December 2023), the global economy was characterised by geopolitical tensions, continued inflationary pressure and tighter monetary policy in several major economic regions.」

「During the cumulative second quarter of the fiscal year (1 April 2023 to 30 September 2023), the global economy showed an overall slowdown in growth, although conditions varied by region. The outlook has also become more uncertain against a backdrop of the protracted situation between Russia and Ukraine, armed conflict in the Israel-Palestine region and persistent inflation. Meanwhile, in the automotive market, production by OEMs remained relatively stable as semiconductor supply problems began to ease.」

「During the cumulative first quarter of the fiscal year (1 April 2023 to 30 June 2023), the global economy showed signs of recovery, led by the United States. In Europe, however, continued inflation put downward pressure on economic activity, while China showed weakness in manufacturing sentiment, resulting in mixed conditions across regions.」

「During the fiscal year, the automotive industry remained in a difficult situation due to global semiconductor supply shortages and disruptions to logistics networks caused by the impact of COVID-19 and other factors.」

「Amid growing concerns over a slowdown in the global economy due to volatility in financial and capital markets and global inflationary trends, the outlook remains uncertain.」

「During the cumulative second quarter of the fiscal year (1 April 2022 to 30 September 2022), the global economy remained in a difficult situation due to the impact of lockdowns in Chinese cities following the spread of COVID-19, customer production cuts caused by semiconductor supply shortages and disruptions to logistics networks. In addition, geopolitical factors in Europe and continued inflation in steel, energy and freight costs, together with the rapid depreciation of the yen, further increased uncertainty over the outlook for the global economy.」

「During the cumulative first quarter of the fiscal year (1 April 2022 to 30 June 2022), the Company continued to be forced to respond flexibly to substantial production fluctuations amid the situation between Russia and Ukraine and restrictions on economic activity in China. The outlook also remained uncertain, including trends in global inflation.」

「During the fiscal year, the Company was forced to respond flexibly to substantial production fluctuations due to the global spread of COVID-19, semiconductor shortages and supply-chain disruptions caused by logistics problems. In addition to continued inflation in steel, energy and freight costs, the situation between Russia and Ukraine also contributed to an increasingly uncertain outlook.」

「During the cumulative third quarter of the fiscal year (1 April 2021 to 31 December 2021), the global economy remained in a difficult situation, with no end in sight to the spread of COVID-19. In the automotive industry, substantial production fluctuations caused by the semiconductor shortage were observed, particularly among automakers, while global inflationary trends, including higher steel prices and logistics costs, began to become apparent.」

「During the cumulative second quarter of the fiscal year (1 April 2021 to 30 September 2021), the global economy remained in a difficult situation overall, as COVID-19 resurged in some regions, including Asia. In the automotive industry, the impact of the semiconductor shortage became apparent, particularly among automakers, requiring responses to substantial production fluctuations. Rising prices for raw materials, including steel, and higher logistics costs also became headwinds.」

「The semiconductor shortage was also a headwind for the automotive industry, forcing production stoppages in Japan, the Americas, China and other regions.」

「The United States and Europe shifted towards recovery as the fiscal year-end approached, but new problems such as semiconductor shortages also emerged, making flexible production responses necessary during the year.」

「China, which recovered earliest from April last year, continued to perform well. In Europe and the United States, however, conditions deteriorated sharply in the first quarter before turning to a rapid recovery from the second quarter onward. The impact has persisted in Southeast Asia, where conditions remain below the previous year. The outlook also remains uncertain due to the renewed spread of infections and the global semiconductor shortage.」

「During the cumulative second quarter of the fiscal year (1 April 2020 to 30 September 2020), the global economy was severely affected by COVID-19. Although the impact continued, particularly in Southeast Asia, during the second quarter, the economic recovery in China that began in the first quarter continued, while production by automakers in North America and Europe also recovered rapidly. It was therefore a period that required flexible responses to increases and decreases in production in each region. Meanwhile, Europe saw the emergence of a second wave of infections, and the outlook remains uncertain, including the potential impact of policy and other changes following the US presidential election in November.」

「Economic activity came to a severe standstill in many regions as the global spread of COVID-19 expanded. In Japan, automotive production and exports also declined, and conditions deteriorated rapidly.」

「The global economy slowed sharply due to the impact of COVID-19, and recovery is expected to take a considerable amount of time. Demand in the automotive industry also remained weak as consumer sentiment declined worldwide, while COVID-19 further compounded the decline in production volumes.」

「During the cumulative third quarter of the fiscal year, the global economy showed weakness in Europe and Asia against a backdrop of concerns including the intensifying US-China trade friction. In Japan, personal consumption remained sluggish, while production and exports also lacked strength.」

「During the cumulative second quarter of the fiscal year, economic conditions slowed in Asia and Europe amid concerns over US-China trade friction and the UK's exit from the EU.」

「Consolidated net sales for the cumulative first quarter of the current consolidated fiscal period declined to ¥62,445 million, down 3.1% year on year, due to the weak European market and other factors.」

「During the first half of the current consolidated fiscal year, the global economy followed a moderate recovery trend, but growth slowed in the second half against a backdrop of concerns including US-China trade friction and the UK’s withdrawal from the EU.」

「During the current consolidated fiscal year, the global economy remained firm, centered on the US and China, and recovered moderately.」

「(North America) Mainly due to lower sales to the Big Three US automakers and lower production efficiency, sales were ¥20,820 million, down 1.9% year on year, and segment profit was ¥412 million, down 70.6%.」

「(North America) The substantial impact of lower orders from the Big Three US automakers resulted in sales of ¥10,481 million, down 6.6% year on year, and segment profit of ¥289 million, down 56.2%.」

「The global economy in fiscal 2017 appears likely to remain in an uncertain environment, including rising geopolitical risks.」

「Due to sluggish domestic demand and the impact of the Kumamoto earthquake, sales were ¥19,430 million, down 3.2% year on year.」

「During the cumulative second quarter of the current consolidated fiscal period, the US economy recovered moderately on favorable employment conditions and strong personal consumption. Europe remained on a generally recovery-oriented trend, despite downside risks including the UK’s withdrawal from the EU. China and Asia remained firm, supported by public investment and economic policies in individual countries, but growth slowed due to declining exports and other factors. In Japan, meanwhile, capital investment remained weak because of sluggish exports and lower corporate earnings resulting from the yen’s appreciation. The recovery in personal consumption was also slow, leaving the economy in a stagnant state.」

「In Europe, uncertainty continues amid the impact of the UK’s withdrawal from the EU and geopolitical risks. The Chinese and Asian economies generally remained firm, but growth slowed due to declining exports. Against this backdrop, the domestic economy faced concerns over an economic slowdown due to the yen’s appreciation and falling share prices, while production and exports remained flat.」

「Prolonged economic stagnation and weaker consumer willingness to purchase may reduce demand for four-wheeled and two-wheeled vehicles, affecting the performance of the Group, which manufactures parts for these vehicles. In addition, as the Group operates in countries around the world, economic stagnation in these markets may also affect its performance.」