Japanese manufacturing companies have bleak business prospects

May 19, 2020

Each Japanese company in the manufacturing industry has announced the financial results for the fiscal year ending March 31, 2020, as COVID-19 continued. Each company expects a decrease in revenue of this year, but it is not clear how much it will be affected.

Akio Toyoda, president of Toyota Motor explained at the financial results presentation on May 12, 2020 that it expects a decrease in sales volume this year beyond the global financial crisis in 2009. Toyoda emphasized, “However, we will continue to keep the domestic production capacity of 3 million vehicles definitely.” Mazda Motor, DENSO and other companies also have announced their financial results, and have not decided the forecast for the next fiscal year.

Murata Manufacturing, which manufactures electronic devices, is forecasting a 6.8% year-on-year decrease in results for the current fiscal year, but plans to invest 200 billion yen in total to increase production capacity and construct a plant. NEC has announced that it will promote the solution proposals that make full use of its original technology to the manufacturing industry for a changing society.