Suzuki Motor Corp.

Automakers including Stellantis and Volkswagen are turning to new lubricant blends as motor oil shortages worsen due to the Iran war, the Financial Times reported. Supply chains for high-quality Group III base oils were severely disrupted after Iran struck Shell's gas-to-liquids plant in Qatar in March, and prices have nearly tripled from prewar levels to about $4,000 per ton in Europe and the U.S. Stellantis said it evaluated reformulated lubricants and secured alternative products that meet industry standards, while Volkswagen said it has secured supplies for now and is evaluating additional sourcing options. Toyota and Suzuki have also secured alternative supplies, and Nissan informed dealers of reduced production capacity for most lubricant products and said it would constrain supplies of its high-quality motor oil. Holly Alfano, CEO of the Independent Lubricant Manufacturers Association, warned that alternative suppliers have limited volumes and any renewed shipping disruption, refinery outage or other supply shock could rapidly worsen the situation.

Chinese auto giant BYD's Japanese subsidiary has launched the mini electric vehicle "RACCO," intensifying competition in the mini EV segment. Going forward, EMT, a joint venture funded by five Japanese and Chinese companies including Chery Automobile, as well as Suzuki, plan to enter the market, bringing the total number of mini EV models to four including the Racco. In fiscal 2025, even the top-selling Nissan Sakura recorded only around 10,000 units, far below the roughly 200,000 units of Honda's N-BOX, the leader among gasoline-powered mini vehicles. BYD aims to sell 10,000 units annually, but all mini EV models are priced above 2 million yen, higher than gasoline vehicles. The national government provides subsidies of up to 580,000 yen, and when combined with local government subsidies, in some cases such as in Tokyo, the vehicles can be purchased for under 1 million yen. Hikaru Todoroki, principal at KPMG Consulting, predicts that because mini vehicle users prioritize price, fierce price competition will ensue after the subsidies end. A source at a domestic manufacturer also points out the need to compete on performance and price against the entire mini vehicle segment.

BYD, the Chinese EV giant, will launch the Raccoon, a kei passenger EV developed exclusively for the Japanese market, on the 28th. Since entering Japan in 2023, cumulative sales have struggled at just over 7,400 units, and the company aims to turn things around with the first foreign-brand model designed from scratch to meet kei specifications. Industry observers see price as the biggest focal point, with analyst Hiroki Ihara of Tachibana Securities noting, 'If it comes in under 2 million yen regardless of subsidies, Japanese automakers should be on high alert.' The national subsidy currently stands at a flat 150,000 yen, lower than for Japanese cars, and some believe that a price below 2 million yen without subsidies could generate solid demand. Atsuki Tofukuji, president of BYD Auto Japan, has said the company is aiming for a price that is cheaper than the Dolphin, attractive, and within reach. On the sales network front, BYD has 77 locations including 56 authorized dealers, and Yanase, an imported car dealer, has also opened a store as its first Chinese brand offering, though the actual impact on sales remains uncertain. As Japanese rivals counter with models like Nissan's Sakura and Honda's kei EV, and Suzuki plans to enter the segment within this fiscal year, the Raccoon's price announcement will be the first step in gauging BYD's prospects for cracking the Japanese market.