Analysts: Japanese Automakers Face Dual Risks of Iran War and Yen Appreciation; Every 1% Change in Yen Could Impact Operating Profit by 2%-4%
Analysts point out that Japanese automakers are facing a dual risk from the Iran war and the appreciation of the Japanese Yen. Previously, companies like Toyota, Honda, and Nissan benefited from the Yen's historic weakness, but a joint intervention by the US Treasury Department and Japan's Ministry of Finance in early August caused the Yen to strengthen against the US Dollar after falling below 163. Analysts state that every 1% change in the Yen typically affects Japanese automakers' operating profits by about 2%, and for some car companies, it can be as high as 4%. This will force them to choose between raising prices in overseas markets or facing pressure on their profits. Furthermore, the Middle East conflict could lead to supply chain disruptions and increased costs. The Strait of Hormuz and the Red Sea are critical shipping lanes, and Japanese automakers rely on petrochemical products such as aluminum and naphtha. The rise in raw material costs (including naphtha, resins, memory chips, aluminum, copper, and steel) will have a widespread negative impact on the industry's profitability.
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Disclaimer: This content reflects the author's personal views only and does not constitute investment advice.
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