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Last Trade - 07/08/20

Sector
Consumer Cyclicals
Size
Mid Cap
Market Cap £2.44bn
Enterprise Value £3.12bn
Revenue £14.15bn
Position in Universe 311th / 3862

Japan automakers' May global sales drop 38% as lockdowns weigh

Mon 29th June, 2020 7:57am
TOKYO, June 29 (Reuters) - Japanese automakers' global sales
declined 38% in May, in the third straight month of big falls as
most automotive factories and dealerships remained closed due to
coronavirus lockdowns.
    The country's seven major automakers sold a total of 1.47
million vehicles last month, down sharply from 2.38 million
units a year ago, according to Reuters calculations based on
sales data released by these companies. But the decrease was
smaller than the 50% tumble posted in April.
    Global production at these automakers fell 62% to 918,974
units in May, compared to a production slump of 55% in April.
    Car demand has plummeted globally since March as people were
forced to stay indoors in most countries due to lockdowns to
control the outbreak, leading to deep uncertainty about the
longer-term economic impact.
    Many countries have been easing their lockdown measures, but
industry experts anticipate that it would take up to five years
for demand to recover to 2019 levels.    
    Japan's biggest automaker Toyota Motor Corp  7203.T  sold
609,460 vehicles in May, down 34% from a year ago. Nissan Motor
Co's  7201.T  sales fell 37.3% on year to 272,873 units, while
sales at Honda Motor Co  7267.T  slipped 29% to 327,000 units.
    Vehicle sales fell in nearly all regions, with North America
and Europe being the worst hit. China was the only bright spot,
where Toyota, Nissan, and Mazda Motor Corp  7261.T  reported
higher sales. 
    Most automakers are preparing for a big financial hit from
the pandemic due to the lockdowns in the United States and
Europe. Toyota has said it expects an 80% profit slump this
year, its lowest in nine years.  urn:newsml:reuters.com:*:nL4N2CU17G
    The pandemic has piled more pressure on Nissan, which had
been struggling with falling sales and profitability even before
the outbreak, forcing it to roll back on an aggressive expansion
plan by ousted leader Carlos Ghosn.

 (Reporting by Naomi Tajitsu; Editing by Rashmi Aich)
 ((naomi.tajitsu@thomsonreuters.com; +81364411078; Reuters
Messaging: naomi.tajitsu.thomsonreuters.com@reuters.net))
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