Copyright FOURIN, Inc. 2023
Isuzu Motors’s Financial Results for Fiscal Year 2020
According to Isuzu Motors's fiscal year 2020 results, consolidated net sales declined 8.3% year-on-year to 1.9 trillion JPY and operating profit fell 31.9% to 95.7 billion JPY, both decreasing for the second consecutive year. Global vehicle sales declined 7.5% to 555,000 units due to the outbreak of the new coronavirus infection. In the first half of fiscal year 2020, sales declined 27.4% to 215,000 units, but in the second half, demand began to recover, rising 12.2% to 340,000 units. Decline in unit sales volume was significant, resulting in a 66 billion JPY drop in sales.
Isuzu expects global vehicle sales in fiscal year 2021 to reach a record high of 734,000 units (up 32.3%). Sales of commercial vehicles are expected to recover in North America and Malaysia, so demand for inventory replenishment is anticipated. In addition, sales of light commercial vehicles are expected to increase in Thailand and Australia. Based on the forecast of increased sales, sales revenue for fiscal year 2021 is expected to reach a record high of 2.5 trillion JPY (up 31.0%) and operating profit to rise to 170 billion JPY (up 77.6%).
In May 2021, Isuzu announced a medium-term management plan covering the fiscal years of 2021-2023. While aiming to expand existing businesses and improve profitability, Isuzu aims to realize carbon neutrality (electrification) and evolution of logistics (connected and autonomous driving). As performance targets, the company set sales revenue of 2.8 trillion JPY and operating profit of 250 billion JPY for the final year of the plan. Isuzu aims to achieve the set targets through synergies with UD Trucks, whose acquisition was completed in April 2021, and the global rollout of new models.