By Rina Ukita / Yomiuri Shimbun Staff Writer

Mitsubishi Motors Corp. said Wednesday it has slashed its net income forecast for the fiscal year ending March 2026 to 10 billion yen from the previous estimate of 40 billion yen announced in May. This represents a 76% decrease year on year. The revision reflects intensifying sales competition as rivals step up their offensive in regions such as Southeast Asia to avoid the impact of tariff measures by the administration of U.S. President Donald Trump.

The automaker also revised downward its operating profit forecast, indicating core business profitability, for this fiscal year from 100 billion yen to 70 billion yen. In addition to the impact of U.S. tariff policies, rising material costs are among factors contributing to the decline in profit. The company also lowered its global sales forecast for this fiscal year to 869,000 units, 9,000 fewer than the previous estimate. Sales declines are expected not only in Southeast Asia, the company's main market, but also in Europe and Australia.

President and CEO Takao Kato explained at an online press conference on Wednesday that the competitive environment is worsening. "It is difficult to raise prices and reduce sales incentives as planned. This tough situation will continue for some time," Kato said.

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This article is from The Yomiuri Shimbun. Neither Dow Jones Newswires, MarketWatch, Barron's nor The Wall Street Journal were involved in the creation of this content.

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August 29, 2025 02:39 ET (06:39 GMT)

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