UBS 2026-06-22

Japan Autos, Auto Parts and Auto Tech Sector: Automobile sector strategy: Upgrading stance from bearish to neutral

Report Coverage

Broker
UBS
Region
United States, Japan
Sector
Industrials & Advanced Manufacturing
Report Type
Industry Report
Primary Focus
Japan Autos, Auto Parts and Auto Tech Sector

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Report Summary

We are revising our earnings forecasts based on a ¥160/$ assumption. We are upgrading our sector stance to neutral, upgrading our rating on Isuzu Motors to Buy and We recommend with Buy ratings Suzuki Motor and Isuzu Motors, the winners in Global South markets, and Toyota Motor, which has completed its profit structure transformation. We view US exposure as a short-term negative factor due to tariffs and intensifying competition and thus have Sell ratings on Subaru and Nissan Motor. We also have a Sell rating on Archion due to its unattractive valuation. Figure 3: Rating, price target and EPS changes JPY bn Rating Price Target (¥) EPS FY3/27 FY3/28 FY3/29 Prev

Key Takeaways

  • 0% of sales, or ¥100,000 per vehicle (Figures 9-10), as well as sluggish sales in the
  • Share price performance
  • 10% JPY/CAD 1.2% 0.1% 1.8% 0.5%
  • 20% JPY/BRL 0.4%
  • 24% JPY/GBP 0.0% 0.0% 0.4% 0.1%
  • 30% JPY/THB -0.7% 0.1% -0.8% 0.0% 2.0% 0.5%

Why This Report Matters

UBS's 18-page analysis on "Japan Autos, Auto Parts and Auto Tech Sector: Automobile sector strategy: Upgrading stance from bear" provides institutional-grade insights for investors and professionals seeking to understand current market dynamics and investment implications in this space.

Topics Covered

profit tariff Japan Autos, Auto

Companies Mentioned

June Japan Autos Auto Parts Auto Upgrading Automobiles Mao Eguchi Since February

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