2026 New Year’s President Message (Summary)

Jan. 6, 2026

News Release

 As the final year of our three-year plan toward 2030, 2025 delivered broad and concrete achievements, even in an environment of high uncertainty. It was truly the year when we felt the strongest sense of progress.
 Looking ahead to 2026 and beyond, we will continue to navigate an unpredictable era by further strengthening our core advantages: the world’s most comprehensive lineup of drive units and our globally integrated production network. These pillars will ensure we remain resilient and responsive, no matter how environmental or market conditions evolve.Driven by a culture that breaks barriers and embraces challenges, and by the power of manufacturing excellence, we aim to become a company that creates new value in mobility over the next three years.

Electrification: The full-lineup strategy is proving successful; Intelligence: Development of high-value system-based products is making steady progress
Electrification
To address diverse electrification needs across regions, we offer a full lineup of HEV, PHEV, and BEV drive units. For BEVs, we launched our second-generation eAxle in 2025. While BEV demand shows signs of slowing in the market, we will maintain development speed without compromise.
Demand for AT and CVT products continues to grow, particularly in the Global South, and we are actively responding to these new inquiries.

Intelligence
We are advancing product development by combining our hardware strengths with integrated vehicle control, in-cabin and external sensing, map and predictive data, and analytics. By integrating sensing and AI-based recognition and decision-making, we aim to deliver features such as “Stress-Free Entry” and “Occupant Monitoring.”

Leverage and strengthen global production bases to promote localized manufacturing that meets customer needs
With 150 production sites worldwide, we are driving localization strategies that reflect market characteristics and customer needs, while adapting to changes in trade and economic security. We are reinforcing operations in key regions—Japan, North America, India, and South America—as strategic growth areas.
Strengthening region-led management (local leadership, sales, procurement, and production) has accelerated proposal speed and increased inquiries and orders across multiple product lines.

Human capital to support management: A company where everyone actively challenges and grows
We are promoting cultural and mindset transformation to create workplaces that embrace challenge. More employees are looking outward and forward, breaking down organizational barriers, and energizing teams as leaders. We feel strong momentum in this transformation.
People are the driving force behind our transformation toward 2030, and we will continue to invest in human capital without hesitation.

Aim to become a company that creates the value of mobility in the next three years
While harvesting the results of the past three years, we will accelerate efforts to strengthen our management foundation, including Balance Sheet reformation.
To adapt to an increasingly volatile external environment, we will implement deeper structural reforms and shift our profit base from volume to value.
By enhancing profitability in existing businesses and securing resources for sustainable growth, we will steadily prepare for 2030.
Building on the confidence gained from recent achievements and the growing spirit of challenge, we aim to become a company that creates new value in mobility over the next three years.