Key Facts
• On July 31, Toyota Group’s seven key suppliers announced FY2026 forecasts.
• Denso revised its revenue forecast upward; six others maintained April projections.
• U.S. tariffs under the Trump administration are a key factor in revenue decline.
• Denso anticipates up to a ¥130 billion operating profit drop due to tariffs.
• Aisin maintains a ¥20 billion tariff impact forecast, focusing on logistics efficiency.
• Other companies’ full-year tariff impact estimates:
– Toyota Industries: ¥50 billion
– JTEKT: ¥30 billion
– Toyota Boshoku: ¥7–10 billion
– Toyoda Gosei: ¥9 billion
• Companies aim to offset impacts through production optimization and price adjustments.
• April–June 2025 results showed mixed performance due to product variations.
• Denso recorded a ¥12.5 billion operating profit loss from tariffs in Q1 FY2025.
• Aisin, Toyota Industries, JTEKT, Toyoda Gosei, and Toyota Boshoku also reported losses.
• U.S. and China demand remained strong; Japan showed recovery; Europe weakened.
• On July 23, Japan and the U.S. reached a tariff negotiation agreement.
Summary
Toyota Group’s seven key suppliers revealed their FY2026 forecasts, with Denso revising its revenue upward while others maintained earlier projections. U.S. tariffs under the Trump administration remain a significant challenge, with Denso estimating a ¥130 billion operating profit impact. Other companies, including Aisin, Toyota Industries, JTEKT, Toyota Boshoku, and Toyoda Gosei, reported varying levels of tariff-related losses but are implementing strategies like production optimization and price adjustments to mitigate effects. April–June 2025 results showed mixed performance, influenced by product variations and currency fluctuations. Despite challenges, demand in the U.S. and China remained robust, and Japan showed signs of recovery. A recent tariff agreement between Japan and the U.S. may shape future business conditions.
