Mazda Motor Corp.

New car sales in Japan for the first half of fiscal 2026, from April to September, rose 5.1% year on year to 2,292,064 units, the highest level since fiscal 2020, when sales slumped due to the spread of the novel coronavirus. The abolition of the environmental performance tax on automobile purchases at the end of March provided a tailwind. The figures were announced on the 1st by the Japan Automobile Dealers Association and the National Light Motor Vehicle Association. By category, registered vehicles such as passenger cars and trucks drove the overall increase, rising 9.6% to 1,504,178 units, with notable growth from Toyota Motor and Honda, while Mazda and others that introduced new models also posted gains. Meanwhile, light motor vehicles, which saw few refreshed models or new launches, fell 2.5% to 787,886 units, marking their first decline in two years. Sales for the single month of September, announced at the same time, rose 1.3% year on year to 433,683 units, with registered vehicles up 2.5% for a sixth consecutive month of growth, while light motor vehicles slipped 0.6%; among the latter, Nissan Motor and Mitsubishi Motors posted increases on the strength of new models launched last autumn.

The Ministry of Finance has designated the drive to bring companies in future industries, or the New Economy, onto the Stock Exchange of Thailand as one of the key performance indicators, or KPIs, for three agencies: the Board of Investment, or BOI; the Securities and Exchange Commission, or SEC; and the Stock Exchange of Thailand, through the BOI to IPO project, in order to assess proactive performance beyond their normal mandates. The measure aims to draw foreign capital and operators across the supply chain from upstream to downstream, including advanced electronic components such as PCB and optical transceivers, modern vehicles, smart agriculture, global pet food, and the wellness sector, to raise funds on the Thai stock market. The BOI board meeting on September 11, 2026 approved additional incentive measures, or on-top incentives, for companies that receive investment promotion and list on the stock exchange. New Economy businesses receive an additional three years of corporate income tax exemption beyond the normal criteria, or the option of an additional 50% corporate income tax reduction for five years. General businesses receive an additional two years of corporate income tax exemption, or the option of an additional 50% corporate income tax reduction for three years. From 2023 to June 2026, there were investment promotion applications totaling more than 5 trillion baht in target industries such as semiconductors, PCB, the AI supply chain, digital, clean energy, robotics, and aircraft parts. In the first half of this year, actual investment of more than 500 billion baht already flowed into the economy, and in 2026 alone, four leading Japanese automakers, Isuzu, Mazda, Mitsubishi Motors and Honda, announced additional investments in Thailand worth a combined total of more than 50 billion baht. Asadej Kongsiri, director and manager of the Stock Exchange of Thailand, said the project will create four areas of mutual benefit, or four big wins, covering the business sector, investors, the capital market and the overall economy. The SEC has approved new revised criteria to let target companies enter the fundraising process faster by shortening the track record requirement. Meanwhile, the CMDF fund provides support in the form of a matching fund, subsidizing expenses and fees for IPOs at 7 million baht per company. At the same time, the three agencies agreed to set up a joint task force, with the support framework of the project between the stock exchange and the CMDF set at a total of five years, ending in 2031.

Pornchai Theeravej, Director-General of the Excise Department, disclosed that the National Electric Vehicle Policy Committee, or EV Board, has approved in principle a restructuring of the excise tax on electric vehicles to support the industry's transition period. The new tax structure will be divided into three rates: the lowest rate for domestic manufacturers that meet local content requirements, a middle rate for importers that plan to invest in building factories in the country, and the highest rate for importers that only sell vehicles. The highest rate will take effect first, and private-sector representatives from three automotive associations have agreed with the approach but asked for further discussion on the grace period. Lawaron Saengsanit, Permanent Secretary of the Ministry of Finance, said clarity is expected within this September before the proposal goes to the Cabinet. Narit Therdsteerasukdi, Secretary-General of the Board of Investment, said the meeting also approved the appointment of two subcommittees, one on promoting electric vehicle manufacturing and one on developing the electric charging station network, and assigned the Permanent Secretary of the Ministry of Finance to consider additional support for commercial electric vehicles such as buses, electric trucks, and electric motorcycles. The meeting also acknowledged that of new vehicle registrations this year, more than 50% were electric vehicles combined, covering BEVs, hybrids, and plug-in hybrids, with BEVs rising from 0.3% five years ago to nearly 30%, and hybrids at about 23%. Meanwhile, four major Japanese automakers, Mitsubishi Motors, Isuzu, Honda, and Mazda, have announced plans for continued investment in Thailand totaling more than 50 billion baht through 2029 to 2030.

The Board of Investment (BOI) has revealed that Japan remains a key investment partner for Thailand. In 2025, Japanese investors applied for investment promotion for 302 projects with a total value exceeding 113.7 billion baht, more than doubling from the previous year. In the first half of 2026, there were 123 projects worth 32.79 billion baht, reflecting that Thailand remains an important investment base for Japan, particularly for investments aimed at upgrading technology and increasing production efficiency to support the transition of global industries. BOI Secretary-General Narit Therdsteerasukdi stated that Japanese investment is entering a new cycle, building on existing production bases to develop high-value products. For instance, Isuzu is investing over 15 billion baht to upgrade its pickup truck production base, Mazda is investing 7.4 billion baht to produce new hybrid models, Mitsubishi has announced an additional investment of 16 billion baht by 2030, and Honda plans to invest 12 billion baht by 2029 to produce two new car models. This makes Thailand the only country outside Japan to produce a total of eight car models. Meanwhile, the automotive supply chain is shifting towards EV and hybrid components, such as Astemo investing 3.5 billion baht to produce PCU inverters and Aisin investing in hybrid transmission systems. The electronics sector is also expanding into advanced components, with Murata producing MLCCs and Panasonic producing upstream materials for circuit boards. The new factory will be the first production base for MEGTRON materials in ASEAN to support AI. Additionally, there are investments in aviation and agri-food, such as NMB-Minebea investing over 2.6 billion baht to open an aircraft parts factory in Lopburi, and Toyo Saikan investing 2.47 billion baht to produce plant-based beverages. A survey by the Japanese Chamber of Commerce (JCC) indicates that 23% of Japanese companies plan to increase their investment in Thailand in 2026, while 48% will maintain their current investment levels. The BOI also supports the establishment of regional offices in Thailand, with over 40% currently coming from Japan.

Mazda Motor reported a first-quarter shift from loss to profit, issued full-year earnings guidance, and reaffirmed dividend expectations for the fiscal year ending March 31, 2027. The stock trades at a price-to-earnings ratio of 7x, well below the Asian auto industry average of 12.7x and a peer average of 21x, and also below an estimated fair P/E of 14.4x. A discounted cash flow model suggests a fair value of ¥1,527.66 per share compared with the current price of ¥1,181. The shares have returned 14.16% over the past 90 days and 27.66% over one year, but are down 5.18% year-to-date.

The consolidated April–June results for Japan's seven major automakers are now in, with Toyota Motor posting a net profit of 1.477 trillion yen, up 75.6 percent year on year, and Honda roughly 2.3 times higher, as a weaker yen and reduced US tariff burdens lifted earnings. Nissan Motor and Mazda, which were in the red a year earlier, also swung to a profit, and six of the seven companies — all except Subaru — saw earnings improve. A weaker-than-expected yen and lower US tariff rates under the Japan–US agreement provided a tailwind, while sales in North America and Japan remained solid. Honda Chief Financial Officer Masao Kawaguchi noted that the surge in raw material prices triggered by worsening Middle East tensions had also eased from June and did not rise as much as anticipated.

Mazda announced its consolidated results for the April–June quarter of fiscal 2026, posting a net profit of 29.6 billion yen. This compares with a net loss of 42.1 billion yen in the same period a year earlier. Although raw material costs rose, reductions in fixed costs and foreign exchange effects boosted earnings. The company left its full-year consolidated net profit forecast for the year ending March 2027 unchanged at 90 billion yen, which falls below the average estimate of 96.2 billion yen from 12 analysts polled by IBES.

Mazda Motor Corporation reported a 7.2% year-on-year increase in global passenger vehicle sales to 111,078 units in June 2026, rebounding from a 5% decline in the same month last year. Domestic sales jumped 18% to 13,844 units, while overseas sales rose almost 6% to 97,234 units. For the first six months of the year, however, global sales fell nearly 5% to 606,850 units, with domestic sales down 6.1% to 76,622 units and overseas sales down 4.5% to 530,228 units. The CX-5 remained the best-selling model globally in the first half, with sales up 3.4% to 174,205 units, accounting for almost 29% of total sales. Global vehicle production rose 4.8% to 601,444 units in the first half, driven by an over 11% increase in Japan to 388,503 units, while overseas production fell 5.2% to 212,941 units.

Mazda Motor Corporation reported a 5.7% year-on-year increase in global passenger vehicle sales to 101,074 units in May 2026, recovering from a 9% decline in the same month last year. Domestic sales fell 9.5% to 8,965 units, while overseas sales rose 7.5% to 92,109 units. The CX-5 remained the top-selling model globally with 25,998 units, accounting for almost 26% of total sales, followed by the CX-30 with 17,160 units and the CX-50 with 15,731 units, the latter surging 74%. For the first five months of the year, global sales declined 7.1% to 495,740 units, with domestic sales down over 10% to 62,770 units and overseas sales down 6.6% to 432,970 units. US sales fell almost 7% to 164,672 units year-to-date, China dropped over 11% to 24,196 units, while Europe increased 12% to 75,443 units. Global production rose 3% to 491,647 units in the five-month period, driven by a 10% increase in Japan to 317,230 units, while overseas production fell 8% to 174,417 units. Exports from Japan rose almost 11% to 261,410 units, with shipments to North America up 10.4% to 135,952 units and Europe surging 24% to 53,584 units.

Japan's weakening yen could deliver a combined profit upside of roughly 934 billion yen, or $5.8 billion, to the country's major automakers if the currency stays near current levels, according to Bloomberg estimates. Toyota, Honda, Nissan, Subaru, and Mazda all used more conservative exchange-rate assumptions in their forecasts, with Toyota's May forecast assuming 150 per dollar while the yen has been trading around 161. Toyota estimates that every 1 yen decline against the dollar adds 50 billion yen to operating profit, and Bloomberg-compiled analyst estimates average 4 trillion yen for Toyota's operating profit, above its 3 trillion yen forecast. The setup could strengthen further as energy and raw material costs ease, with crude down more than 30% in yen terms from its late-April peak, and Bloomberg Intelligence analyst Tatsuo Yoshida said the shift could become a major positive factor for Toyota and Honda. Outside automakers, the impact is more mixed, with airlines potentially benefiting from lower jet fuel prices but still facing dollar-linked cost pressures, while a survey showed 40.7% of companies said the late-May exchange rate near 159 per dollar had a negative impact.