Honda profits tumble as Trump tariffs weigh on the carmaker

The Tokyo-based institution said that beardown motorcycle income offset bigger losses.

Honda profits person tumbled for the archetypal fiscal fractional of the twelvemonth done September arsenic United States President Donald Trump’s tariffs measurement connected the Japanese car and motorcycle brand.

On Friday, Honda reported that its nett fell by 37 percent.

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Tokyo-based Honda Motor Co recorded a 311.8 cardinal yen ($2bn) nett for April-September, down from 494.6 cardinal yen ($3.2bn) a twelvemonth before. Sales implicit the six months totalled 10.6 trillion yen ($69bn), down 1.5 percent from astir 10.8 trillion yen ($70.5bn).

Honda lowered its nett projection for the fiscal twelvemonth done March 2026 to 300 cardinal yen ($2bn), which would beryllium a diminution of 64 percent from 835.8 cardinal yen ($5.4bn) the twelvemonth before. It had earlier forecast a 420 cardinal yen ($2.7bn) yearly profit.

Honda, which makes the Accord sedan and Odyssey minivan, said an unfavourable currency complaint besides wounded its bottommost line, erasing 116 cardinal yen ($756m) from its operating nett implicit the six months.

But Honda achieved grounds income successful motorcycles, led by beardown results successful the Asian region, excluding Vietnam. Honda said it sold much than 9 cardinal motorcycles successful Asia during the archetypal half, up from 8.8 cardinal a twelvemonth ago.

Honda’s motorcycle income improved successful each planetary region, but for Europe, astatine a grounds 10.7 cardinal units sold.

Honda’s planetary conveyance income successful the archetypal fractional totalled 1.68 cardinal vehicles, down from 1.78 million. By region, conveyance income grew successful North America, but fell successful Japan, the remainder of Asia and Europe.

Although it helps that Honda produces galore of its vehicles successful the US, tariffs caused a diminution of 164 cardinal yen ($1.1bn) successful operating nett implicit the six-month period, the institution said.

Adding to its challenges, Honda has faced a spot shortage aft the Dutch authorities successful precocious September took power of Nexperia, which is based successful the Netherlands, but owned by Chinese institution Wingtech Technology, citing nationalist information concerns.

In response, China blocked shipments of chips from Nexperia’s plant successful the confederate Chinese metropolis of Dongguan, though it has present allowed those exports to resume.

Vehicle accumulation astatine Honda’s works successful Celaya, Mexico, has halted since October 28, portion accumulation astatine North American plants was adjusted, starting October 27, owed to the Nexperia-related proviso disruptions. Honda did not springiness a day connected erstwhile accumulation volition beryllium restored to mean levels.