Recently, seven prominent Japanese automakers unveiled their performance forecasts for fiscal 2026 (which concludes in March 2027). They anticipate a combined net profit of JPY 3.905 trillion. While this represents a 13% increase year-on-year, it also signals a significant 48% drop from the peak achieved in fiscal 2023. The weight of U.S. automotive tariff expenses will continue to be felt in fiscal 2025. Additionally, the geopolitical climate in the Middle East introduces fresh challenges. Performance across these automakers is mixed: Toyota is bracing for a 22% year-on-year decrease in net profit, marking its third consecutive year of decline. Honda, on the other hand, is poised for profit growth, thanks to minimized losses associated with battery electric vehicles. Nissan is cautiously optimistic about a modest profit. Subaru is projecting a robust 43% year-on-year surge in net profit and has announced a share buyback initiative. Mazda is eyeing a net profit of approximately JPY 60.1 billion. Mitsubishi Motors is forecasting a net profit of JPY 25 billion. Suzuki stands out as the sole company achieving growth in both revenue and profit, with global sales of four-wheeled vehicles on the rise, potentially clinching the second spot among domestic automakers.