TOKYO, Japan: Honda Motor Co. posted a pointy decline in revenue for the 9 months via December, underscoring the rising strain on Japanese automakers from U.S. commerce coverage shifts and a cooling electric-vehicle market.
Tokyo-based Honda reported a revenue of 465.4 billion yen (US$3 billion) for the interval, down 42 % from 805.2 billion yen a 12 months earlier. It marked the second consecutive 12 months of revenue declines over the identical nine-month span for the maker of the Accord sedan, Civic compact, and Odyssey minivan.
Sales through the interval fell 2.2 % to fifteen.98 trillion yen ($102.6 billion). Despite the downturn, Honda maintained its full-year revenue forecast of 300 billion yen ($1.9 billion).
Honda cited a number of headwinds, together with slowing demand for electrical autos within the U.S. market. That weak point offset stronger efficiency in its motorbike enterprise, which the corporate stated helped cushion the broader impression on earnings.
Reflecting altering market circumstances, Honda lowered its world EV gross sales ratio goal for 2030 to twenty %, down from a earlier aim of 30 %. The automaker additionally stated it has canceled improvement of some electrical automobile fashions, acknowledging that the EV market was evolving sooner than anticipated.
Policy modifications within the United States have added to the strain. The Trump administration has rolled again applications that inspired the adoption of electrical autos through the Biden administration, favoring oil and gasoline manufacturing as an alternative. While President Donald Trump diminished tariffs on cars and auto elements to fifteen % from an earlier proposed 25 % final 12 months, the levies proceed to weigh on Japan’s export-dependent economic system.
Japan has pledged $550 billion in funding in U.S. initiatives as a part of broader financial cooperation, however tariffs stay a significant problem for automakers reliant on abroad gross sales.
Honda’s struggles mirror these of its friends. Last week, Toyota Motor Corp., Japan’s largest automaker, additionally reported a decline in latest revenue and introduced management modifications, naming Chief Financial Officer Kenta Kon as its subsequent chief govt and president.
The broader political backdrop in Japan has shifted as nicely. Prime Minister Sanae Takaichi, who took workplace in October because the nation’s first feminine chief, secured a landslide parliamentary election victory for the ruling occasion over the weekend. The result’s anticipated to strengthen the Liberal Democratic Party’s capability to advance insurance policies that enhance financial progress, together with elevated authorities spending on know-how and protection.
Investors appeared inspired by the broader market momentum. Honda shares rose 2.1 % in buying and selling on February 10, whereas Japan’s Nikkei 225 index climbed 2.3 %, extending file highs for a second consecutive session amid optimism linked to Takaichi’s political standing.