Honda Motor Co. announced a significant 37% drop in its first-half fiscal profit for the period ending September, attributing the decline to the adverse effects of U.S. tariffs and unfavorable currency exchange rates. The Tokyo-based automaker reported a profit of 311.8 billion yen ($2 billion), down from 494.6 billion yen in the same period last year. Sales also saw a slight decrease, falling 1.5% to 10.6 trillion yen ($69 billion). The company has revised its annual profit forecast downward to 300 billion yen ($2 billion), a stark 64% decline from the previous year’s 835.8 billion yen. Earlier projections had anticipated a 420 billion yen ($2.7 billion) profit. Honda cited President Donald Trump’s tariffs as a major factor, which led to a 164 billion yen ($1.1 billion) reduction in operating profit. Additionally, unfavorable currency rates erased 116 billion yen ($756 million) from its earnings. Despite these challenges, Honda achieved record motorcycle sales, particularly in Asia, where it sold over 9 million units, up from 8.8 million a year ago. Global motorcycle sales reached a record 10.7 million units, with growth in all regions except Europe. However, global vehicle sales declined to 1.68 million units from 1.78 million, with drops in Japan, Asia, and Europe, though North America saw an increase. Honda also faced supply chain disruptions due to a chip shortage following the Dutch government’s intervention in Nexperia, a Dutch-based company owned by China’s Wingtech Technology. This led to production halts at Honda’s Mexico plant and adjustments in North American operations. Despite these setbacks, Honda’s stock rose 1.8% to 1,585 yen ($10) in Tokyo trading.
Honda’s profit slips as President Trump’s tariffs take their toll on Japanese automakers
