Latest news with #TatsuoYoshida
Business Times
13-08-2025
- Automotive
- Business Times
Suzuki's India unit doubles down on SUVs as small cars slide
[NEW DELHI] Maruti Suzuki India is set to expand its sports utility vehicle (SUV) portfolio with a second mid-sized model, sources familiar with the plan said, as the nation's top carmaker scrambles to counter slowing demand for its bread-and-butter small cars. The Indian unit of Japan's Suzuki Motor plans to launch the vehicle on Sep 3 and hopes it will double its sales in the segment, the sources said, asking not to be identified discussing business plans. It will be the first new model to roll out of the company's plant in Kharkhoda in the northern state of Haryana, from where it targets around 10,000 units a month when scaled fully, they said. The launch comes at a critical juncture. Although still the nation's largest carmaker by sales, the Suzuki unit's hatchback-heavy lineup has helped give rivals – Mahindra & Mahindra, Hyundai Motor India and Tata Motors – a headstart as consumer preference shifted towards SUVs. That, together with shrinking small-car sales, has put Maruti's goal of grabbing 50 per cent of the domestic market, up from around 40 per cent now, in doubt. While the Grand Vitara has seen volumes plateau in recent months, the new SUV is positioned as a more mass-market version, the sources said. That would see the new mid-sized SUV retail through Maruti Suzuki's Arena outlets, while the Grand Vitara is sold through the Nexa outlets meant for more premium-positioned cars. Maruti Suzuki did not immediately respond to an emailed request for comments. The new SUV will be only the second product from Suzuki globally in this category, underscoring India's central role in the company's growth strategy. The company 'is struggling to regain lost market share due to continued weakness in its mainstay mini and compact segments, despite a recovery in output and strengthening of its SUV product portfolio', Tatsuo Yoshida, a senior autos analyst at Bloomberg Intelligence, wrote in a March report. Accounting for 60 per cent of Suzuki's global sales, the Indian unit will play a critical role in the success of its parent's fiscal 2026 to 2031 medium-term plan, Yoshida said, adding that by further strengthening its lineup, particularly in SUVs, Maruti can capture expanding demand in rural areas to boost both sales volume and market share. BLOOMBERG
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Business Standard
13-08-2025
- Automotive
- Business Standard
Maruti Suzuki India bets on SUVs to offset small car sales slowdown
Maruti Suzuki India Ltd. is set to expand its SUV portfolio with a second mid-sized model, people familiar with the plan said, as the nation's top carmaker scrambles to counter slowing demand for its bread-and-butter small cars. The Indian unit of Japan's Suzuki Motor Corp. plans to launch the vehicle on Sept 3 and hopes it will double its sales in the segment, the people said, asking not to be identified discussing business plans. It will be the first new model to roll out of the company's plant in Kharkhoda in the northern state of Haryana, from where it targets around 10,000 units a month when scaled fully, they said. The launch comes at a critical juncture. Although still the nation's largest carmaker by sales, the Suzuki unit's hatchback-heavy lineup has helped give rivals — Mahindra & Mahindra Ltd., Hyundai Motor India Ltd. and Tata Motors Ltd. — a headstart as consumer preference shifted toward SUVs. That, together with shrinking small-car sales, has put Maruti's goal of grabbing 50 per cent of the domestic market, up from around 40 per cent now, in doubt. That would see the new mid-sized SUV retail through Maruti Suzuki's Arena outlets, while the Grand Vitara is sold through the Nexa outlets meant for more premium-positioned cars. Maruti Suzuki didn't immediately respond to an emailed request for comments. The new SUV will be only the second product from Suzuki globally in this category, underscoring India's central role in the company's growth strategy. The company 'is struggling to regain lost market share due to continued weakness in its mainstay mini and compact segments, despite a recovery in output and strengthening of its SUV product portfolio,' Tatsuo Yoshida, a senior autos analyst at Bloomberg Intelligence, wrote in a March report. Accounting for 60 per cent of Suzuki's global sales, the Indian unit will play a critical role in the success of its parent's fiscal 2026-31 medium-term plan, Yoshida said, adding that by further strengthening its lineup, particularly in SUVs, Maruti can capture expanding demand in rural areas to boost both sales volume and market share.
Los Angeles Times
07-08-2025
- Automotive
- Los Angeles Times
Toyota braces for $9.5 billion hit from US tariff turmoil
Toyota Motor Corp. lowered its annual guidance as it warned of a ¥1.4 trillion ($9.5 billion) hit to its bottom line from U.S. tariffs that have rattled the global automotive industry. The world's biggest carmaker now sees ¥3.2 trillion in operating income for the fiscal year ending in March 2026, it said Thursday. That's down from its initial forecast of ¥3.8 trillion, and also missed analyst expectations. The carmaker reported operating income of ¥1.17 trillion in the first quarter, down 11% from a year earlier, though beating analysts' predictions for ¥890 billion. While price hikes in some regions helped that metric, the tariff impact was ¥450 billion for the period. The outlook, which coincides with the start of President Donald Trump's sweeping new tariffs, marks the carmaker's most comprehensive account of its likely impact beyond a previous estimate that it faced a ¥180 billion hit in April and May alone. Toyota's estimate dwarfs recent forecasts from global heavyweights as the auto industry contends with fast-changing policies that are seeing costs balloon. Ford Motor Co. said last week that it sees a net tariff impact of $2 billion, about $500 million more than the company expected previously. Meanwhile, Stellantis NV sees tariffs setting back earnings by about €1.5 billion, and General Motors Co. said its exposure is $4 billion to $5 billion. Still, Toyota has a tendency to take a conservative approach to forecasts and 'recent trends suggest potential upside, with Japan, North America, and China leading the charge,' said Bloomberg Intelligence senior auto analyst Tatsuo Yoshida. 'Toyota appears to be working on initiatives to mitigate the tariff burden — such as revising its supply chain for US-bound vehicles.' Its forecast is also more pessimistic than Japanese peers. Subaru Corp. pegs the tariff impact at ¥210 billion, Nissan Motor Co. forecasts ¥300 billion and Honda Motor Co. anticipates ¥450 billion. Toyota's shares fell as much as 2.4% in Tokyo, before closing down 1.5%. Japanese carmakers now face a 15% tariff on vehicles they send to the US after the two countries reached a trade pact last month that also includes plans for Japan to create a $550 billion American investment plan. While the rate is lower than the additional 25% anticipated by the industry, uncertainties linger over the finer details of its implementation — auto tariff discounts for the EU, Japan and South Korea have yet to be codified and until they do, cars will face the higher charge. Toyota said in July, in response to the deal, that it hopes for improved ties between the US and Japan, and called for further tariff reductions. Despite the turmoil, Toyota logged record global sales during the first half of 2025, thanks to strong demand for its gas-electric hybrids in core markets. It sold 5.5 million units between January and June, a 7.4% bump from the previous year, mostly due to robust sales in the US, Japan and China. The carmaker expects group sales of 11.2 million this year. Toyota also plans to build a new vehicle manufacturing plant in Japan's Aichi, with operations slated to start in the early 2030s and aimed at maintaining domestic production at 3 million vehicles.
Iraqi News
07-08-2025
- Automotive
- Iraqi News
US tariffs prompt Toyota profit warning
Tokyo – US tariffs prompted Japanese auto giant Toyota on Thursday to cut its annual net profit forecast by 14 percent. The world's largest automaker by vehicle sales now expects a net profit of 2.66 trillion yen ($18.06 billion), down from 3.1 trillion yen previously forecasted. 'Due to the impact of US tariffs and other factors, actual results showed decreased operating income, and the forecast has been revised downward,' the firm said in a statement. Its shares fell by as much as 2.4 percent in Tokyo afternoon trade before recovering off lows. The Trump administration in April imposed a 25 percent levy on Japanese cars imported into the United States, dealing a hefty blow to Japan and its crucial auto sector. Although Tokyo and Washington announced a trade deal in July, lowering that rate to 15 percent and providing a degree of relief for the industry, it's not yet clear when it will take effect. There is also confusion over whether the car tariff — as well as other 'reciprocal' levies — will be capped at 15 percent, or if these would come on top of those in place before Trump's trade blitz. The auto industry had a pre-existing 2.5 percent tariff, meaning the levy currently stands at 27.5 percent. Toyota's revenues in the first quarter were up 3.5 percent, but net income plunged by 36.9 percent. – Tariffs hit forecasts – The results come after Honda said Wednesday its net profit had halved in the first quarter because of US tariffs, although it upgraded its annual profit forecast due to the deal with Washington. In the first three months of its fiscal year, which begins in April, net profit fell to 196.67 billion yen ($1.3 billion), a drop of 50.2 percent year-on-year, Honda said. Revenue dipped 1.2 percent to 5.34 trillion yen. Honda, Japan's second-biggest automaker after Toyota, has managed to withstand the pressure better than its Japanese competitors. More than 60 percent of the vehicles it sells in the United States are built there, the highest percentage of all major Japanese automakers, according to Bloomberg Intelligence auto analyst Tatsuo Yoshida. Struggling Japanese rival Nissan, whose mooted merger with Honda collapsed this year and which is slashing jobs and closing factories, in July posted a net loss of 116 billion yen ($784 million). German carmaker BMW stuck to its 2025 targets last month despite quarterly profits tumbling a third due partly to US tariffs, insisting its large American operations meant it could weather the storm. That stood in contrast to domestic rivals Volkswagen and Mercedes-Benz, who cut their outlooks as they grapple with the fallout from Trump's hardball trade policies. Ford meanwhile projected a $2 billion full-year earnings hit due to the levies.
NDTV
07-08-2025
- Automotive
- NDTV
Japanese Automaker Toyota Cuts Profit Forecast Amid Trump Tariff Threat
Japan: US tariffs prompted Japanese auto giant Toyota on Thursday to cut its annual net profit forecast by 14 percent. The world's largest automaker by vehicle sales now expects a net profit of 2.66 trillion yen ($18.06 billion), down from 3.1 trillion yen previously forecasted. "Due to the impact of US tariffs and other factors, actual results showed decreased operating income, and the forecast has been revised downward," the firm said in a statement. Its shares fell by as much as 2.4 percent in Tokyo afternoon trade before recovering off lows. The Trump administration in April imposed a 25 percent levy on Japanese cars imported into the United States, dealing a hefty blow to Japan and its crucial auto sector. Although Tokyo and Washington announced a trade deal in July, lowering that rate to 15 percent and providing a degree of relief for the industry, it's not yet clear when it will take effect. There is also confusion over whether the car tariff -- as well as other "reciprocal" levies -- will be capped at 15 percent, or if these would come on top of those in place before Trump's trade blitz. The auto industry had a pre-existing 2.5 percent tariff, meaning the levy currently stands at 27.5 percent. Toyota's revenues in the first quarter were up 3.5 percent, but net income plunged by 36.9 percent. Tariffs hit forecasts The results come after Honda said on Wednesday its net profit had halved in the first quarter because of US tariffs, although it upgraded its annual profit forecast due to the deal with Washington. In the first three months of its fiscal year, which begins in April, net profit fell to 196.67 billion yen ($1.3 billion), a drop of 50.2 percent year-on-year, Honda said. Revenue dipped 1.2 percent to 5.34 trillion yen. Honda, Japan's second-biggest automaker after Toyota, has managed to withstand the pressure better than its Japanese competitors. More than 60 percent of the vehicles it sells in the United States are built there, the highest percentage of all major Japanese automakers, according to Bloomberg Intelligence auto analyst Tatsuo Yoshida. Struggling Japanese rival Nissan, whose mooted merger with Honda collapsed this year and which is slashing jobs and closing factories, in July posted a net loss of 116 billion yen ($784 million). German carmaker BMW stuck to its 2025 targets last month despite quarterly profits tumbling a third due partly to US tariffs, insisting its large American operations meant it could weather the storm. That stood in contrast to domestic rivals Volkswagen and Mercedes-Benz, who cut their outlooks as they grapple with the fallout from Trump's hardball trade policies. Ford, meanwhile, projected a $2 billion full-year earnings hit due to the levies.
