US EditionHonda Motor reports 76% plunge in operating profit in huge earnings miss
- Honda Motor, Japan's second-largest car manufacturer, announced a net income of 835 billion yen for the previous fiscal year, reflecting a decline of nearly 25 percent compared to the prior year, as reported on May 13, 2025.
- The decline resulted largely from the 25 percent import toll imposed by the US last month, which affected Japanese carmakers and complicated profit forecasts due to frequent tariff revisions.
- Honda’s automobile sales fell mainly in China and the ASEAN region, while the company noted expanded hybrid vehicle sales and impacts from increased EV incentives in North America.
- CEO Toshihiro Mibe said the tariff impact and recovery efforts could cost Honda around 450 billion yen this year and described the tariff effect as "very significant" in complicating outlooks.
- For the 2025-26 financial year, Honda forecast a 70 percent net profit drop to 250 billion yen, or $1.7 billion, indicating sustained pressure from US trade tariffs on global auto profits.
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Japan’s carmakers report steep losses, job cuts
The NewsHonda and Nissan both reported staggering losses, the latest sign of the Japanese car industry’s woes. Honda’s operating profits dropped 76% in the three months to April, while Nissan — which yesterday announced 20,000 global job cuts — announced record-breaking losses. Rival Toyota already forecast a 21% drop in profits this year, which it blamed on US tariffs. Japan’s carmakers have been slow to pivot to electric vehicles and plug-in h…
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Honda forecasts 70% net profit drop citing 'tariff impact'
Japan's Honda Motor on Tuesday forecast a 70 percent drop in net profit for the 2025-26 financial year as US trade tariffs weigh on the global auto industry.
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