Nikkei Thunderstorm? Subaru's operating profit plummeted by 90%, and Japan's seven largest car companies' profits are expected to approach the waistline.

Recently, Subaru announced 2025 financial results (April 2025 - March 2026). During the reporting period, the company's revenue increased 2.1% year-on-year to 4.785 trillion yen; however, operating profit was only about 40.1 billion yen, a plunge of 90% year-on-year; net profit was 90.8 billion yen, a plunge of 73% year-on-year. According to CCTV, Honda, Nissan, and Toyota have successively announced fiscal 2025 annual reports. Among them, Honda listed on the stock exchange for the first time in nearly 70 years, losing 414.3 billion yen; Nissan lost 533.1 billion yen, a huge loss for two consecutive years; Toyota did not lose money, but financial data show that the net profit for the fiscal year 2025 was 3.85 trillion yen, down nearly 20% year-on-year. Against this backdrop, the Japanese automotive industry collectively lowered its FY2026 profit forecast. On May 8, 2026, in Tokyo, Japan, Toyota Motor Corporation reported a net profit decline of 19.2% in the previous fiscal year to 3.8 trillion yen. On May 13, 2026, Nissan Motor Corporation CEO Ivan Espinosa attended the headquarters earnings briefing in Yokohama, Japan. According to a recent report by Japan's Nikkei Asia Review, due to multiple factors such as geopolitical conflicts, tariff pressures, and supply chain risks, the profits of Japan's automobile manufacturing industry have shrunk significantly, and profits in the fiscal year 2026 may be close to falling. It is reported that seven major Japanese automobile companies, Toyota, Honda, Nissan, Suzuki, Mazda, Subaru and Mitsubishi Motors, are expected to achieve a total net profit of 3.9 trillion yen in fiscal year 2026, that is, from April 2026 to March 2027, which is 48% lower than the record high of 7.54 trillion yen in fiscal year 2023, which is close to the end. Tensions in the Middle East have hampered shipping through the Strait of Hormuz, and global energy and raw material prices have skyrocketed, continuing to erode corporate profit margins. (Source: CCTV Finance, etc.; compiled by Chen Hao, Automobile House)