In the consolidated fiscal year under review, while the global economy was on a recovery trend after the COVID-19 pandemic came to an end, the pace of the economic recovery slowed due to reasons such as high inflation caused by the prolongation of the situation in Russia and Ukraine, and the accompanying monetary tightening in Europe and the United States, and the renewed spread of infections following the easing of China’s zero-COVID policy. In Japan, although sluggish external demand was a factor in an economic downturn towards the end of the year, personal consumption recovered, due partly to governmental support measures, and both control of COVID-19 infections and economic activity were achieved.
In the automotive industry, the number of four-wheeled vehicles sold globally was 80,976 thousand units in calendar year 2022 (down 0.4% year-on-year) due to the impact of semiconductor supply shortages. In the U.S., the number of cars sold was 13,903 thousand units in the calendar year (down 7.8% year-on-year), falling below the previous year for the first time in two years. In Europe, Russia's invasion of Ukraine and rising energy prices coincided, and the number of cars sold reached 11,309 thousand units (down 4.0% year-on-year), falling below the previous year for the first time in two years. Due to policies such as tax cuts on internal combustion vehicles and subsidies for electric vehicles, the number of cars sold in China reached 26,864 thousand units in the calendar year (up 2.2% year-on-year), surpassing the previous year for the second consecutive year. In Japan, the number of cars sold was 4,386 thousand units in FY2022 (up 4.0% year-on-year), surpassing the previous year for the first time in four years. The number of registrations was 2,693 thousand units (up 1.2% year-on-year), increasing for the first time in six years, and the number of registrations of mini cars was 1,693 thousand units (up 8.9% year-on-year), increasing for the first time in four years.
On the other hand, global sales of two-wheeled vehicles were 15,608 thousand units for the calendar year (up 7.9% year-onyear), a year-on-year increase for two consecutive years, due to India, the largest market for motorcycles, bringing COVID-19 infections under control. Indonesia recovered in the second half, totaling 5,221 thousand units for the calendar year (up 1.6% year-on-year), a year-on-year increase for the second consecutive year. In Japan, the number sold was 362 thousand units in the calendar year (down 4.5% year-on-year), a year-on-year decrease for the first time in two years, due to declines in motorcycle type 2 (125 cc or less) and mini-size motorcycle (250 cc or less).
Under these circumstances, the Group steadily pursued the policies in the Medium-Term Management Plan that started from FY2020: “Business restructuring”, “Reinforcement of corporate structure,” and “Measures aimed at next generation businesses.” During the consolidated fiscal year under review, as part of the selection and concentration of businesses, the Company transferred all of the equity interest in its subsidiary, Oshima Electric Works Co., Ltd., to Murakami Corporation on April 1, 2022, to withdraw from the door mirror and automobile lamp business, and disbanded Mitsuba Europe Limited, a subsidiary of the Company, as of March 31, 2023. Moreover, in order to strengthen our financial position, the Company has worked on the improvement of profitability by increasing prices and reducing expenses globally to respond to cost increases including soaring raw material prices, and the Company has also worked on inventory reductions, holding down capital investment and reducing cross-shareholdings from the perspective of asset efficiency. The Company implemented the early redemption of some preferred shares on March 31, 2023
We ask you, our shareholders, for your continued support and guidance.
Representative Director, President
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