Honda Profit Drops 42% to ¥465.4bn, Cuts 2030 EV Target to 20%
Honda posted a 42% profit drop to 465.4 billion yen in its latest nine months, with sales down 2.2% to 15.98 trillion yen. It kept its full-year profit forecast at 300 billion yen but cut its 2030 EV sales ratio target to 20% from 30% due to U.S. tariffs.
1. Profit Decline and Sales Dip
Honda’s profit for the nine months through December fell 42% to 465.4 billion yen from the prior period, while revenue slipped 2.2% to 15.98 trillion yen as overall vehicle demand softened.
2. Impact of U.S. Tariffs
The profit slump was attributed in part to higher U.S. import tariffs imposed on Japanese-made models, which increased production costs and weighed on North American margins.
3. Full-Year Forecast Unchanged
Despite the nine-month shortfall, Honda maintained its full-year profit projection of 300 billion yen, signaling confidence in cost controls and currency assumptions for the remaining quarter.
4. Revised EV Strategy
Citing weaker U.S. electric-vehicle demand, Honda lowered its global EV sales ratio goal for 2030 from 30% to 20%, reflecting a more conservative outlook on EV adoption and investment pacing.