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Komatsu Reports $650 Million USD Impact of US Tariffs
Akihiro Komuro Komatsu announced that its consolidated net income for the fiscal year ending March 2026 is expected to decrease by 30% year on year to 309 billion yen. This is lower than the market forecast of 403 billion yen. The U.S. administration’s tariff policy will have a negative impact of $650 Million USD (94.3 billion yen). The exchange rate assumption of 1 yen = 135 yen (compared with 152.8 yen in the previous fiscal year) is also a factor, as it reflects an appreciation of the yen by approximately 8 yen compared with the current market rate.
Of the 943 billion yen, 785 billion yen is attributable to increased production costs due to tariffs, and 158 billion yen is attributable to a decrease in sales volume due to reduced demand.
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Layoffs Begin in the North American Truck Segment
Chris Fisher Both Volvo and International Truck have initiated layoffs this year due to sluggish orders and high production capacity in preparation for a potential 2026 truck pre-buy ahead of the phase 3 GHG Emission Regulations scheduled for implementation in 2027.
Volvo Trucks North America plans to lay off up to another 350 workers from a Virginia plant as part of job cuts affecting up to 980 employees across the country since the beginning of the year.
Employees at the New River Valley plant in Dublin, Virginia, were notified of the workforce reduction this month, and their last day at the facility will be June 27, Volvo spokesperson Janie Coley said.
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US Tariffs Could Hurt Japan GDP
Akihiro Komuro On April 12, as I write this, things are still in flux. There is a lot of media coverage every day, with reports on the tariffs reaching almost hysterical levels. The reciprocal tariff rate for Japan announced by the U.S. is 24%, which is an unexpectedly high level given the past relationship between the two countries.
As a result, Japan’s real GDP is expected to fall by about 0.6% in the short term (2025) and 1.8% in the medium term (2029). This will have a huge impact on Japan, which has maintained a growth rate of around 3% per year. It has been reported that Japan is currently negotiating with the Trump administration, but it is doubtful whether the current Japanese government will be able to negotiate effectively with the US. We will see whether the terms will be reconsidered after the negotiations in the future.
I would just like to point out one thing: President Trump talks about Japan’s failure to buy American cars as unfair and negligent, but this is a clear mistake. It is true that American cars do not sell well in Japan. GM is the only company with a formal dealer network in Japan, and it is even hard to find GM dealer shops in Japan. Chrysler pulled out in 2018 and Ford in 2016.
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US Tariffs Pressure India Automotive Sector
Aditya Kondejkar The US administration has been pressuring India to reduce its import tariffs on cars, but India remains cautious about making drastic changes. While there is some openness to lowering tariffs on imported cars, a complete removal of these duties is unlikely in the near future. The ongoing discussions between the two countries may lead to some tariff adjustments, but India’s primary concern is protecting its local industries.
Source: https://news24online.com/ Read The Article
PSR Analysis. Even if India were to reduce tariffs to zero, the impact on the domestic automotive market would likely be minimal. The duty differences are relatively small, and the risk of imports flooding the market is low. India’s automotive component sector, especially in areas like EV differentials, bevel gears, and crankshafts, has been growing steadily. This sector benefits from India’s low labor costs, significantly lower than countries like Mexico and the US, giving it a competitive advantage in global supply chains.
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Toyota Major Auto Funder of Climate Deniers?
Guy Youngs Toyota has been revealed to be the largest auto industry funder of climate deniers in US Congress, according to a report released today by Public Citizen.
Toyota sells more gas-powered, polluting vehicles than any other company on Earth, and thus it has a vested interest in continuing to sell those polluting vehicles. But the problem is that gas-powered, polluting vehicles are not good for the health of humans or other living beings on this planet
Toyota has repeatedly ranked as one of the…
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2025 Budget Pushes Green Mobility, Manufacturing
Aditya Kondejkar Aligned with the ‘Viksit Bharat’ vision, the 2025 budget proposes a forward-looking approach for the auto sector, fostering a sustainable ecosystem with financial allocations and duty exemptions. Among the highlights:
- Support for EV Manufacturing. The exemption of customs duties on 35 capital goods for lithium-ion battery production is a commendable step toward reducing production costs and improving EV affordability.
- Production-Linked Incentive (PLI) Scheme. The government allocated $325.31 million USD (Rs 2,819 crore), down from $403.90 million USD (Rs 3,500 crore) last year, which may raise concerns about the continuity of financial backing for emerging EV and hydrogen fuel cell technology.
- Tariff Rationalization. Reduction of tariff categories to just eight simplifies the customs structure and promotes ease of business for auto manufacturers.
- MSME Credit Boost. With increased access to credit for MSMEs in the auto component industry, supply chain development will strengthen, driving innovation and expansion. MSME stands for Micro, Small, and Medium Enterprises. This term refers to a significant sector of the Indian economy that plays a crucial role in the country’s economic development and growth.
- Dhan-Dhaanya Krishi Yojana. Rural income growth via this scheme, along with increased Kisan Credit Card limits, is expected to boost demand for two-wheelers, tractors, and small commercial vehicles.
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Infrastructure Spending Seen Boosting CV Demand
Aditya Kondejkar “Looking ahead, we expect the gradual increase in infrastructure spending to boost consumption and improve demand, a revival across most CV segments, particularly in buses and vans, which are set to outperform last year’s levels. Intermediate, light and medium commercial vehicles (ILMCVs) are also likely to record similar or improved growth compared to fiscal year 2024.” – Girish Wagh, executive director at Tata Motors
Source: AutocarPro Read The Article
Market Dynamics and Growth Segments
The CV industry is set to benefit from the government’s pro-growth policies, particularly in infrastructure. The increased Capex outlay of US$115.5 billion ( ₹10 trillion) in the Union Budget 2023-24 is driving growth in sectors such as steel, cement, mining, and construction, which are key consumers of CVs.
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