Japan Autos, Auto Parts and Auto Tech Sector: Feedback from Asia marketing trip

研报英文原文证据摘录

Japan Autos, Auto Parts and Auto Tech Sector: Feedback from Asia marketing trip

Global Research

21 July 2026ab

Japan Autos, Auto Parts and Auto-tech Equities

JapanSector

Automobiles

Feedback from Asia marketing trip

Kohei Takahashi

Analyst

kohei.takahashi@ubs.com

Feedback from visits to investors in Singapore and Hong Kong +81-3-5208 6172

From 13 to 17 July, we met with investors in Singapore and Hong Kong. Amid ongoing Mao Eguchi

sharp volatility in equity markets, investors generally understood and agreed with our Associate Analyst

shift in stance on the auto sector from bearish to neutral. Honda, Suzuki and Isuzu mao.eguchi@ubs.com

generated the most discussion from a buying perspective, while investors most +81-3-5208 6242

frequently raised Mazda, Subaru, Denso and Aisin from a selling perspective. Our

impression was that investor views diverged most on Toyota. We have Buy ratings on

Isuzu, Suzuki and Toyota.

Comparisons with 2000: Has underperformance vs. electronics/precision

instruments run its course?

From May 2025 to June 2026, the TOPIX-17 automobiles & transportation equipment

index (including auto OEMs, auto parts suppliers and tyre makers) underperformed the

electronics & precision instruments index by more than 90% (Figure 2). Looking back at

the period from October 1998, the bottom of the dot-com bubble, to its peak in March

2000, the electronics & precision instruments sector outperformed the autos sector by

about 100% at its peak (Figure 4). Comparing current conditions with that period, we

think it is appropriate to re-examine the prevailing bearish view on the overall autos

sector. Moreover, the absolute performance of the automobiles & transportation

equipment index (Figure 3) suggests that the sector's downward trend had begun to