Honda's profit slips as President Trump's tariffs take their toll on
Japanese automakers
[November 07, 2025] By
YURI KAGEYAMA
TOKYO (AP) — Honda reported Friday that its profit for the first fiscal
half through September fell 37% from the previous year, as the damage
from President Donald Trump’s tariffs offset the lift from solid
motorcycle sales.
Tokyo-based Honda Motor Co. recorded a 311.8 billion yen ($2 billion)
profit for April-September, down from 494.6 billion yen a year before.
Sales over the six months totaled 10.6 trillion yen ($69 billion), down
1.5% from nearly 10.8 trillion yen.
Honda lowered its profit projection for the fiscal year through March
2026 to 300 billion yen ($2 billion), which would be a decline of 64%
from 835.8 billion yen the year before. It had earlier forecast a 420
billion yen ($2.7 billion) annual profit.
Honda, which makes the Accord sedan and Odyssey minivan, said an
unfavorable currency rate also hurt its bottom line, erasing 116 billion
yen ($756 million) from its operating profit over the six months.
But Honda achieved record sales in motorcycles, led by strong results in
the Asian region, excluding Vietnam. Honda said it sold more than 9
million motorcycles in Asia during the first half, up from 8.8 million a
year ago. Honda’s motorcycle sales improved in every global region,
except for Europe, at a record 10.7 million units sold.
Honda’s global vehicle sales in the first half totaled 1.68 million
vehicles, down from 1.78 million. By region, vehicle sales grew in North
America, but fell in Japan, the rest of Asia and Europe.
[to top of second column] |
Honda Chief Executive Toshihiro Mibe speaks to the media at Tokyo
Mobility Show during a media day at Tokyo Big Sight in Tokyo, on
Wednesday, Oct. 29, 2025. (Daiki Katagiri/Kyodo News via AP)
 Although it helps that Honda
produces many of its vehicles in the U.S., tariffs caused a decline
of 164 billion yen ($1.1 billion) in operating profit over the
six-month period, the company said.
Adding to its challenges, Honda has faced a chips shortage after the
Dutch government in late September took control of Nexperia, which
is based in the Netherlands but owned by Chinese company Wingtech
Technology, citing national security concerns.
In response, China blocked shipments of chips from Nexperia’s plant
in the southern Chinese city of Dongguan, though it has now allowed
those exports to resume.
Vehicle production at Honda’s plant in Celaya, Mexico, has halted
since Oct. 28, while production at North American plants were
adjusted, starting Oct. 27, due to the Nexperia-related supply
disruptions. Honda did not give a date on when production will be
restored to normal levels.
Honda stocks on Friday gained 1.8% to 1,585 yen ($10) in Tokyo
trading.
All contents © copyright 2025 Associated Press. All rights reserved |
