Market Overview - Japan's new vehicle market declined by 2.3% year-on-year to 367,748 units in January 2026, following a 12% rise to 376,255 in the same month last year [1] - The market remains sluggish, with Japanese consumers facing increased pressure from rising interest rates, as the Bank of Japan raised its key policy rate to a decades-high of 0.75% [5] Vehicle Sales Breakdown - Sales of passenger vehicles declined by 6.2% to 307,838 units, with larger (standard) models dropping by 12% to 130,318 units [2] - Truck sales rose by 25% to 59,214 units, driven by a 50% surge in light truck sales to 17,571 units and a 21% rise in mini-truck sales to 31,125 units [2] - Sales of medium and large buses and coaches remained unchanged at 696 units [2] Manufacturer Performance - Toyota led the market decline with a 3.5% drop to 116,007 units, reflecting a 10% fall in passenger vehicle sales, partially offset by increased truck and bus sales [3] - Daihatsu, a Toyota subsidiary, saw sales rise by almost 11% to 45,251 units, driven by a sharp increase in mini-truck sales [3] - Suzuki's sales decreased slightly to 60,863 units, while Honda's sales fell by less than 2% to 49,411 units [3] - Nissan continued to underperform, with sales falling by over 11% to 35,296 units [3] Market Share of Overseas Brands - Overseas brands accounted for less than 4% of total vehicle sales in Japan, with German automakers such as Mercedes-Benz, BMW-Mini, Audi, and Volkswagen leading this segment [4] Future Projections - GlobalData forecasts a 4.6% rise in light vehicle sales to 4.74 million units in Japan in 2026, followed by a 1% decline to 4.69 million in 2027 [5]

Core Insights - BYD Company Limited reported a significant decline in January 2026 sales, with 210,051 new-energy vehicles sold, representing a drop of over 30.1% compared to January 2025 [1][9] - The decline in sales marks the fifth consecutive month of year-on-year sales decreases for the company [1][6] Sales Performance - The January sales included 205,518 passenger vehicles and 4,533 commercial vehicles, indicating broad-based weakness across key segments [1][2] - Passenger vehicle sales fell sharply by 30.7% year-over-year, while commercial vehicle deliveries showed modest growth of about 10.8% [9] Production and Exports - BYD produced 29.1% fewer vehicles than the previous year, continuing a production decline that has persisted since July 2025 [3] - Exports provided some support, with nearly half of BYD's sales coming from international markets, totaling approximately 100,482 vehicles shipped overseas [3][9] - The company reduced its 2026 export target from 1.5 million vehicles to 1.3 million [3] Market Challenges - The ongoing sales decline highlights increasing challenges for BYD as competition in China's electric vehicle market intensifies [2][5] - The global volume also declined, reflecting a broader weakening trend in the electric vehicle market [5][6]

Core Insights - Maruti Suzuki India Ltd. achieved its highest ever monthly sales volume in January, with a 12% year-on-year increase, driven by a significant surge in exports despite stagnating domestic demand [1] Sales Performance - Total sales reached 236,963 units in January, with exports increasing by 88% to an all-time high of 51,020 units, showcasing the company's expanding global presence and manufacturing efficiency [1] - Domestic sales, including light commercial vehicles, saw a slight growth of 0.4% to 185,943 units, while passenger vehicle sales rose by 0.5% to 174,529 units, indicating weak demand following the initial boost from GST rate cuts [2] - Year-to-date (April-January) total sales increased nearly 8% to 1.98 million units, with domestic sales at 1.528 million units and exports contributing 360,000 units [3] Financial Performance - In the December quarter, Maruti Suzuki reported a 29% increase in revenue from operations to ₹49,892 crore and a 4% rise in net profit to ₹3,794 crore, although profit margins decreased to 11.2% from 13.1% due to adverse commodity prices and other factors [4] Stock Performance - Shares of Maruti Suzuki India traded 0.7% lower at ₹14,100, while the benchmark Sensex fell by 0.1%. The stock has increased by 7% over the past 12 months [5]

Core Insights - The reduction in GST rates on select vehicles has revitalized retail sentiment, leading to increased demand for auto loans and passenger vehicle sales [1][3][6] Vehicle Loan Growth - In September, India's banking sector experienced a vehicle loan growth of 7.3% year-on-year, a decline from the 14% growth seen in the same month the previous year [2] - For the first half of the current financial year, vehicle loan growth ranged from 7.3% to 10.8%, compared to a rise of 13.9% to 17.2% in the same period last year [2] Impact of GST Reform - The GST reforms effective from September 22 created a two-slab tax system, significantly reducing rates on certain vehicle categories, which has led to a recovery in vehicle demand [3][8] - State Bank of India reported a nearly 10% year-on-year growth in auto loans to ₹1.28 trillion during the September quarter, attributing this to the GST cuts [8] Segment Performance - Commercial vehicle sales increased by over 8% year-on-year to 240,000 units, while passenger vehicle sales fell by 1.5% to 1.04 million units, although there were signs of recovery towards the end of the quarter [9] - The two-wheeler segment saw over 7% year-on-year growth, totaling 5.56 million units sold in the July-September period [12] Market Sentiment and Future Outlook - Bankers noted that the recent uptick in vehicle loans is still in early stages, with sustainability dependent on continued demand through the festive season [6] - IndusInd Bank reported a significant rebound in vehicle loan disbursements post-GST implementation, with expectations of continued demand momentum supported by the festive season and improved economic activity [17][16] Commercial Vehicle Segment Challenges - Despite some growth in commercial vehicle sales, lenders remain cautious due to borrower over-leverage and economic sluggishness, leading to tightened underwriting standards [21][23] - The effective cost for customers in the commercial vehicle segment has not changed significantly, as manufacturers have reduced discounts rather than passing on the full benefits of GST cuts [20][21]

Core Insights - Retail sales of locally-produced passenger vehicles in China increased by less than 5% to 1.995 million units in August 2025 compared to 1.906 million units in August 2024 [1] - The domestic passenger vehicle market experienced its seventh consecutive month of growth, driven by government sales incentives and price competition among manufacturers [2] - The Chinese government plans to continue funding subsidy programs until at least the end of 2025 while urging manufacturers to limit excessive discounting to protect smaller EV brands [3] Sales Performance - Retail sales of Chinese-owned brands rose by 9% to 1.32 million units in August, making up two-thirds of total passenger vehicle sales [4] - New energy vehicle (NEV) sales increased by 5% year-on-year to just over 1.079 million units in August, showing a slowdown compared to earlier in the year [4] - Overall passenger vehicle retail sales in China for the first eight months of 2025 rose by 9.5% to 14.741 million units from 13.464 million units in the same period last year, primarily driven by strong demand for sedans and SUVs [4] - NEV sales for the same period increased by 25% to 7.540 million units, representing 51% of total passenger vehicle sales [4]

Core Insights - Bank of America CEO Brian Moynihan discussed the implications of President Trump's new auto import tariffs, which impose a 25% tariff on passenger vehicles, light trucks, and certain auto parts imported into the U.S. [1][2] Economic Impact - The new tariffs are expected to increase car prices and slow vehicle purchases, reflecting a broader market adjustment [2] - Moynihan indicated that the tariffs could contribute to a 0.25% increase in inflation and potentially slow growth in countries like Japan that export to the U.S. [3] - Bank of America projects positive U.S. growth of 2%, with an initial 1.5% in the first quarters, despite the tariff impacts [4] Consumer Behavior - Despite concerns about consumer spending, Bank of America has observed a 5% increase in customer spending compared to the previous year, indicating resilience in consumer behavior [6] - Spending on food, restaurants, and entertainment has increased, driven by higher prices [7] - The unemployment rate stands at 4.1%, with strong wage growth contributing to consumer confidence [8] Business Sentiment - Consumer sentiment dropped nearly 11% in February, yet spending remained stable, suggesting a disconnect between sentiment and actual spending behavior [9][10] - Small and medium-sized businesses are cautious, borrowing less than before the pandemic, indicating a wait-and-see approach regarding the economic impact of tariffs [11][12]

Group 1 - President Trump announced a 25% tariff on all cars not made in the United States, effective April 2, impacting the auto industry significantly [2][4] - General Motors stock fell approximately 6% in early trading, while Stellantis decreased by over 1%, while Tesla saw a slight increase and Ford's shares remained stable [2][3] - Deutsche Bank analysts indicated that Tesla and Ford are relatively insulated from the tariffs due to their vehicle assembly locations, whereas GM has the highest exposure to Mexico [3] Group 2 - The tariffs will apply to imported passenger vehicles, light trucks, and essential automobile parts such as engines and transmissions [4]