Decline in consumer demand due to economic slowdown, population decline and other factors

「In the automotive industry to which the Group belongs, new vehicle registrations, including kei cars, totaled approximately 950,000 units, up 7.5% year on year, excluding passenger vehicles only and excluding trucks, buses and other vehicles. Meanwhile, used vehicle registrations, including kei cars, totaled approximately 1.32 million units, down 0.1% year on year, on the same basis.」

「However, the impact of weaker consumer sentiment due to continued price increases on personal consumption, as well as developments in US trade policy and other factors, poses a risk of weighing on Japan's economy.」

「During the interim consolidated accounting period (1 April 2025 to 30 September 2025), Japan's economy continued its gradual recovery, although the impact of US trade policy was evident, particularly in the automotive industry. Going forward, improvements in the employment and income environment and the effects of various policies are expected to support a gradual recovery, but attention must be paid to the downside risk to the economy from the impact of US trade policy. In addition, the continuing rise in prices poses a risk of weighing on Japan's economy through its impact on personal consumption, including a deterioration in consumer sentiment. Close attention must also continue to be paid to the impact of financial and capital market volatility.」

「A downturn in overseas economies resulting from persistently high interest rates in Europe and the United States and the continuing stagnation of China's property market poses a risk of weighing on Japan's economy. Attention must also be paid to the impact of rising prices, developments in the Middle East, and financial and capital market volatility.」

「However, attention must be paid to risks such as the impact of global developments and concerns about the outlook for the Chinese economy, as well as rising prices, developments in the Middle East, and financial and capital market volatility.」

「However, attention must be paid to risks such as the impact of global developments and concerns about the outlook for the Chinese economy, as well as rising prices and financial and capital market volatility.」

「However, global monetary tightening and other developments continue, creating a risk that a downturn in overseas economies will weigh on Japan's economy. Close attention must also be paid to the impact of rising prices and financial and capital market volatility.」

「During the nine-month period of the current third quarter of the consolidated fiscal year (1 April 2022 to 31 December 2022), Japan's economy was expected to recover, partly due to the effects of various policies addressing COVID-19. However, global monetary tightening and other developments continue, creating a risk that a downturn in overseas economies will weigh on Japan's economy. Attention must also be paid to the impact of rising prices, supply constraints, financial and capital market volatility, and infection trends in China.」

「However, as global monetary tightening and other developments continue, there is a risk that a downturn in overseas economies will weigh on Japan's economy. Close attention must also be paid to the impact of rising prices, supply constraints, and financial and capital market volatility.」

「Although the economy is showing signs of recovery as socioeconomic activity normalizes based on measures to prevent COVID-19 infection, attention must still be paid to downside risks from higher raw-material prices due to the situation in Ukraine and elsewhere, supply constraints, and financial and capital market volatility.」

「The number of infections began to rise from July, and the government issued a fourth state of emergency, resulting in extremely severe conditions. However, conditions began to improve in September as the number of infections declined and the state of emergency was lifted.」

「Meanwhile, the economic outlook is extremely severe and remains uncertain, as the number of infections is rising due to the spread of COVID-19 and the government has issued a fourth state of emergency.」

「Factors affecting the management of the Group include market trends such as younger people moving away from cars and the declining birthrate. In addition, domestic used-car sales are expected to remain difficult due to a cooling in consumer sentiment resulting from the spread of COVID-19 following the consumption tax increase.」

「Although the economy is expected to continue showing signs of recovery as measures to prevent the spread of infection are implemented, attention must be paid to the risk that the spread and prolongation of the infection will weigh on domestic and overseas economies through its impact on socioeconomic activity.」

「The economy has deteriorated since January 2020 due to the impact of COVID-19. Although it is showing signs of recovery through government policies and other measures, the situation remains uncertain due to the risk of an economic downturn resulting from the spread and prolongation of the infection, as well as the decline in personal consumer sentiment caused by worsening employment conditions.」

「Consumer sentiment declined due to requests to refrain from going out amid the spread of COVID-19, and the number of visitors temporarily decreased due to shorter business hours」

「Consumption after the October consumption tax increase did not grow as much as expected」

「However, the outlook for the economy remains uncertain due to the impact of developments in trade issues on the global economy, uncertainty surrounding overseas economies and policies, and the impact of volatility in financial and capital markets.」

「Although the situation remains unpredictable ahead of the consumption tax increase and other developments」

「However, uncertainty about the outlook has not been dispelled, with the yen appreciating sharply in the third quarter, and severe conditions continue. Although the global economy is expected to continue its gradual recovery, close attention is required to the impact of developments in trade issues on the global economy and the impact of volatility in financial and capital markets.」

「Uncertainty about the outlook remains due to the increased downside risk to the global economy from trade friction resulting from protectionist trade policies by the United States and China.」

「Personal consumption lacks strength due to stagnant wage growth, and the recovery in the economy has not been felt. Although the global economy is expected to continue its gradual recovery, uncertainty remains regarding the outlook for the economies of China and other emerging Asian countries, the impact of policy-related uncertainty, and the impact of exchange-rate fluctuations.」

「Economic weakness in Japan and other major countries resulting from a recession, economic slowdown or other factors may affect consumer demand through deterioration in corporate performance and a decline in exports.」