Why is Suzuki Motor stock sliding today?

Suzuki Motor shares are falling 4.3% to trade at ¥2,152 after the automaker cut its pretax profit forecast for the year amid increasing pressure from higher component costs.

Suzuki lowered its full-year pretax profit forecast to ¥690 billion for the fiscal year ending March 2027, down from the prior guidance of ¥720 billion and 5.6% below the previous year’s result. The company attributed the revision to rising raw material costs that are expected to offset the benefit of higher vehicle sales, primarily in its key India market.

The profit warning overshadowed an otherwise solid set of first-half results: consolidated revenue for the six months ended September 30, 2026 rose 19.4% year-on-year to ¥3.419 trillion, while operating profit climbed 5.5% and net profit attributable to shareholders surged 31.6%.

Suzuki maintained its operating profit forecast at ¥540 billion and kept its net profit guidance unchanged, but the pretax profit cut was enough to rattle investor confidence, with the stock having already dropped roughly 3.4% in the prior session before extending those losses today.

The broader Japanese market offered little relief. The Nikkei 225 rose 0.8% chiefly on gains in tech and AI stocks, while other sectors remained fragile. Weak earnings from automaking peer Honda also dented the sector.