Honda Motor(US:HMC) Xi Niu Cai Jing·2025-08-12 07:49Core Viewpoint - Honda's financial performance for the first quarter of the fiscal year 2026 shows significant declines in revenue and profits, primarily due to high tariffs and currency fluctuations impacting operations in key markets [2][3]. Financial Performance - Honda's sales revenue for Q1 FY2026 was 5.34 trillion yen (approximately 260.05 billion yuan), a year-on-year decrease of 1.2% [2][3]. - Operating profit fell to 244.17 billion yen (approximately 11.89 billion yuan), a substantial decline of 49.6% year-on-year [2][3]. - Net profit dropped to 196.67 billion yen (approximately 9.58 billion yuan), reflecting a year-on-year decrease of 50.2% [2][3]. Market Performance - Global vehicle sales for Honda in the first half of 2025 totaled 1.784 million units, down 5.1% year-on-year [4]. - North America showed a positive trend with sales of 841,000 units, an increase of 7.6% year-on-year, while other regions like Japan, Europe, and China experienced declines [4]. - In Japan, sales were 319,000 units, down 6.5% year-on-year, and in Europe, sales were 45,000 units, down 19.1% year-on-year [4]. - The Chinese market faced the most significant challenges, with sales dropping over 24% to 315,200 units in the first half of 2025, and June sales decreased by 15.2% [4]. Strategic Adjustments - Honda announced the closure of its factories in Guangzhou and Wuhan, reducing annual production capacity for fuel vehicles in China from 1.49 million to 1 million units [4]. - Despite the challenges, Honda raised its full-year operating profit forecast from 500 billion yen to 700 billion yen, although this remains below market expectations of 896.24 billion yen [5]. - The company plans to focus on hybrid products and strengthen its automotive business in North America, India, and Japan, while continuing to adjust capacity and enhance technology in the Chinese market [5].