Slowing Economies in China and ASEAN and Weak Automobile Demand

「During the cumulative first quarter of the current consolidated fiscal year, the global economy remained generally resilient. However, turmoil surrounding Iran caused crude oil and crude-oil-derived products to surge and disrupted supply chains, while concerns about an economic slowdown caused by inflation created further uncertainty about the outlook for the global economy.」

「During the fiscal year, the global economy remained resilient overall, but uncertainty over the outlook increased as a result of additional tariffs imposed by the US, rising geopolitical risks, and the continued economic slowdown in China and Southeast Asia.」

「In the automotive industry, the group's business area, the impact of US tariffs on vehicle sales was limited. However, global production by Japanese automakers fell below the previous year's level due in part to further market-share gains by local manufacturers in China, continued weak domestic demand in ASEAN, and continued production cuts by some manufacturers in Japan caused by weak sales.」

「During the fiscal year, the global economy continued to recover steadily overall, but uncertainty over the outlook persisted due to the ongoing war in Ukraine, continued conflict in the Middle East, a slowdown in China, and concerns over policies by the new US administration, including tariffs.」

「During the six months ended in the interim period, the global economy continued to recover gradually overall, but uncertainty over the outlook persisted due to the ongoing war in Ukraine, prolonged conflict in the Middle East and a slowdown in China. In the automotive industry, sales in North America remained strong against a backdrop of robust demand, while EV sales led by local manufacturers expanded further in China. In Japan, the impact of production cuts by some manufacturers contributed to global production by Japanese automakers falling below the previous year's level.」

「In the automotive industry, the group's business area, semiconductor shortages that had long constrained production recovery were resolved. In fiscal 2023, passenger-vehicle production by automakers recovered sharply in Japan and North America, while sales of EVs by local manufacturers in China surged and Japanese automakers lost market share.」

「During the nine months ended in the third quarter, the normalization of economic activity supported a gradual recovery, but uncertainty over the outlook continued due to the prolonged war in Ukraine, heightened tensions in the Middle East, elevated resource and energy prices, persistently high inflation, and a slowdown in China.」

「During the three months ended in the first quarter, economic activity normalized as the impact of COVID-19 waned. However, the global economy remained uncertain due to higher resource and energy prices and rising consumer prices following Russia's invasion of Ukraine.」

「During the six months ended in the second quarter, the global economy showed some signs of recovery. However, semiconductor and other component shortages continuing from the previous period, the impact of the Shanghai lockdown, and worsening international conditions surrounding Ukraine have caused raw-material, resource and energy prices to rise and maritime freight costs to surge. These conditions are expected to take time to resolve, and instability continues.」

「During the three months ended in the first quarter, semiconductor and other component shortages that had continued from the previous period, combined with the impact of the Shanghai lockdown, expanded production adjustments and production stoppages across various manufacturing industries.」

「COVID-19 continues to spread without signs of containment, while reductions in production by customer automakers due to a global semiconductor shortage, higher raw-material costs and rising logistics costs caused by disruptions to maritime logistics have persisted. In addition, sharp increases in resource prices stemming from heightened tensions between Russia and Ukraine and growing global instability have further increased uncertainty surrounding the automotive industry.」

「During the nine months ended in the third quarter, the global economy began to recover from the sharp contraction caused by the rapid spread of COVID-19 in the previous period. However, successive waves of renewed infections caused by variants and shortages of semiconductors and other components became apparent, and production adjustments began in earnest across various manufacturing industries. Rising raw-material prices and higher maritime freight costs associated with the reopening of the economy also became major impediments to improved corporate performance.」

「During the six months ended in the second quarter, the global economy began to recover from the sharp contraction caused by the rapid spread of COVID-19 in the previous period. However, renewed infections caused by variants and shortages of semiconductors and other components became apparent, and production adjustments began in earnest across various manufacturing industries. Rising raw-material prices and higher maritime freight costs associated with the reopening of the economy also became major impediments to improved corporate performance.」

「During the three months ended in the first quarter, the economy entered a gradual recovery trend as economic activity resumed, supported by proactive government economic measures in response to COVID-19 and the wider rollout of vaccinations. However, uncertainty over the outlook continues due to renewed infections caused by COVID-19 variants, production disruptions across a broad range of industries caused by semiconductor shortages, and tight global container supply and demand resulting from disruptions to maritime logistics.」

「During this period, governments implemented policies aimed at containing the infection while maintaining economic activity. China was the first to recover, while other regions bottomed out and entered a recovery trend from the third quarter onward. However, infections continued to spread again in some countries and regions, leading to renewed declarations of states of emergency and lockdowns, and uncertainty over the outlook continued.」

「During the nine months ended in the third quarter, economic activity was severely restricted by restrictions on movement and requests for business closures to prevent the spread of COVID-19, and economic deterioration continued across regions through the second quarter. Governments implemented policies aimed at containing the infection while maintaining economic activity. China was the first to recover, while other regions bottomed out and entered a recovery trend from the third quarter onward. However, infections continued to spread again in some countries and regions, leading to renewed declarations of states of emergency and lockdowns, and uncertainty over the outlook continued.」

「During the six months ended in the second quarter, economic activity was severely restricted by restrictions on movement and requests for business closures to prevent the spread of COVID-19, and the economy deteriorated rapidly. Governments subsequently implemented policies aimed at containing the infection while maintaining economic activity. China was the first to show an economic recovery, while other regions also began to recover gradually. However, signs of renewed outbreaks have emerged in some countries and regions, and uncertainty over the outlook continues.」

「During the three months ended in the first quarter, the global and Japanese economies contracted, as restrictions on movement, production stoppages and logistics disruptions in various countries, and weak private consumption resulting from the spread of COVID-19 had a severe impact on economic activity.」

「Since January of this year, the spread of COVID-19 has had a serious impact on economic activity, as restrictions on movement, production stoppages and disruptions to logistics in countries around the world, and weak private consumption continue to create severe conditions.」

「During the nine months ended in the third quarter, global growth slowed overall due to economic slowdowns in both the US and China resulting from prolonged US-China trade friction, the UK's planned exit from the EU, and stagnation in Europe. Japan's economy also continued to experience low growth as a result of the global slowdown.」

「During the six months ended in the second quarter, global growth slowed overall due to economic slowdowns in both the US and China resulting from prolonged US-China trade friction, as well as stagnation in Europe. Japan's economy was also affected by the global slowdown, and uncertainty over the economic outlook continued.」

「During the three months ended in the first quarter, the global slowdown intensified overall due to the weakening Chinese economy amid US-China trade friction and further deterioration in the European economy. Japan's economy also remained unstable as it was affected by the global slowdown.」

「During the fiscal year, the global economy remained firm overall in the first half, led by the US, but the slowdown intensified in the second half as the Chinese economy weakened amid escalating US-China trade friction and the European economy stagnated.」

「During the nine months ended in the third quarter, the global economy continued to expand moderately overall, supported by stronger domestic demand in the US and firm economic conditions in Europe, despite signs of a slowdown in China. Japan's economy also remained on a recovery trend, supported by firm private consumption and increased capital investment. In the automotive industry, overseas production increased slightly overall: production in the US and China was trending lower, while ASEAN remained strong. In Japan, production volumes were broadly unchanged year on year, despite increases and decreases among individual automakers.」

「During the six months ended in the second quarter, the global economy continued to expand moderately overall, centered on stronger domestic demand in the US and a firm European economy, despite concerns about downside risks to emerging economies, including China, arising from protectionist trade policies pursued by the US administration. Japan's economy also remained on a recovery trend, supported by firm private consumption and capital investment. In the automotive industry, overseas production increased slightly overall, as strong conditions in China and ASEAN offset slower growth in the US. Domestic production declined from the same period of the previous year, despite firm sales of light vehicles and sport utility vehicles, due in part to final-vehicle inspection issues and natural disasters.」

「During the three months ended in the first quarter, the global economy remained generally firm, although continued attention was required regarding protectionist trade policies pursued by the US administration and economic conditions in emerging Asian economies, including China. Japan's economy continued its moderate recovery, supported by improving corporate performance and employment and income conditions. In the automotive industry, the group's main business area, overseas production increased overall, supported by strong conditions in China and ASEAN. In Japan, new-vehicle sales were soft, but production increased slightly year on year due to higher exports.」

「In the automotive industry, the group's main business area, a decline in new-vehicle sales became apparent in the US market, while the Chinese market remained strong as demand growth was supplemented by the effects of tax cuts. Europe and ASEAN also maintained their recovery trend against a backdrop of moderate economic expansion. In Japan, new-vehicle sales remained strong and domestic production increased, despite the impact during the second half of the year on some manufacturers of issues involving final inspections conducted by unqualified personnel.」

「In the automotive industry, the group's main business area, a decline in new-vehicle sales became apparent in the US market. In China, demand growth combined with the effects of tax cuts, and the market remained strong. Europe and ASEAN also maintained their recovery trend against a backdrop of moderate economic expansion. In Japan, new-vehicle sales remained strong and domestic production increased, despite the impact on some manufacturers of issues involving final inspections conducted by unqualified personnel.」

「In the automotive industry, the group's main business area, a decline in new-vehicle sales became apparent in the US market. Although the Chinese market remained firm, concerns arose that growth could slow as the effects of tax cuts diminished. In Europe and ASEAN, signs of recovery emerged in the automotive markets against a backdrop of a gradual economic recovery. In Japan, new-vehicle sales, including light vehicles, remained strong, and domestic production increased.」

「During the three months ended in the first quarter, the global economy remained generally firm across the Americas, China, ASEAN and Europe, despite uncertainty over the outlook, including the UK's planned exit from the EU. Japan's economy also continued to recover moderately, supported by increased public investment and private consumption. In the automotive market, China, Japan and Europe remained firm, while production was reduced in ASEAN, where export recovery was slow, and in the US, where sales stagnated.」

「Although the US and ASEAN markets were broadly flat, total overseas production by Japanese automakers increased as the Chinese and European markets remained firm. In Japan, domestic production was broadly flat, due in part to weak sales of light vehicles.」

「The Chinese market remained strong, supported by the effects of tax cuts, and total overseas production by Japanese automakers increased. In Japan, domestic production was broadly flat, affected by weak sales of light vehicles.」

「During the six months ended in the second quarter, the global economy continued to lack momentum, with growth slowing generally across both developed and emerging economies. Japan's economy also slowed, despite support from increased public-sector demand, due to the slowdown in overseas economies and the impact of the stronger yen. The Chinese market remained strong, partly due to the effects of tax cuts, but the recovery in ASEAN markets remained slow, and growth in the US market also slowed, resulting in a lower increase in total overseas production by Japanese automakers. In Japan, production continued to decline year on year, partly due to the Kumamoto earthquake and the impact of the higher light-vehicle tax introduced in April of the previous year.」

「The slowdown in the Chinese and ASEAN economies continued, resulting in an overall lackluster performance.」