Korean Media: Japanese Electronics Industry's Net Profit Surpasses Automakers for the First Time in 30 Years!
On June 4, South Korean media outlet JoongAng Economic Daily published an article stating that last year, the combined net profit of Japan's seven major electronics companies exceeded the total of seven automobile manufacturers—a first in 30 years since the mid-1990s. The Japanese electronics sector is rebounding after overcoming past stagnation, while once-booming automakers are struggling due to poor performance in the Chinese market, marking a reversal of trends.
The combined net profit of the seven electronics firms—Sony Group, Hitachi, Fujitsu, Mitsubishi Electric, NEC, Panasonic, and Sharp—for the fiscal year 2025 was approximately 3.228 trillion yen. Excluding Sony and Panasonic, the net profits of the other five companies increased compared to the previous year.
On the other hand, the seven automakers—Toyota, Honda, Nissan, Suzuki, Subaru, Mazda, and Mitsubishi—recorded a combined net profit of about 2.775 trillion yen last year. Nissan suffered massive losses for the second consecutive year, and Honda was no exception. None of these seven companies saw an increase in net profit compared to the previous year.
Five years ago, the situation was completely different. In the fiscal year 2021, the combined net profit of the seven automakers reached 4.1584 trillion yen—more than double the 2.3219 trillion yen earned by the seven electronics companies. At that time, automakers generated substantial profits by increasing exports, especially to North America.
The main reason behind the poor performance of Japanese automakers lies in U.S. tariff hikes. Starting in April of last year, the United States imposed a 25% tariff on Japanese vehicles, which was later reduced to 15% in September of the same year. It is estimated that Trump’s tariff policy alone cost the seven Japanese automakers approximately 2.5 trillion yen in operating profit during just one year.
In addition, Japanese automakers are also struggling in China—the world’s largest automotive market—due to falling behind Chinese competitors in electric vehicle technology and software innovation. Last year, Chinese automakers achieved global new car sales that surpassed Japan for the first time in history, marking the first time since 2000 that Japan lost its position as the world’s top auto producer.
Nikkei News pointed out: “Japanese automakers face an innovation dilemma—they are reluctant to disrupt their past successes. However, if they fail to find profitable ways beyond their current business models, even under favorable conditions such as a weak yen, they may still be headed toward decline.”
Original article: toutiao.com/article/1867051194155012/
Disclaimer: The views expressed in this article are solely those of the author.