Honda Motor(US:HMC) 3 6 Ke·2025-12-24 00:40Core Viewpoint - Honda is facing significant challenges due to semiconductor shortages, leading to production cuts in Japan and China, and a downward revision of its sales forecasts for the fiscal year 2026 [1][8]. Group 1: Production and Supply Chain Issues - Honda plans to suspend or reduce vehicle production in Japan and China from late December 2025 to early January 2026 due to semiconductor shortages [1]. - The semiconductor shortage has been a recurring issue, affecting critical areas such as power control, driving assistance, and vehicle safety [1]. - Honda's management previously warned that supply chain fluctuations could negatively impact operating profit by 150 billion yen (approximately 6.75 billion RMB) [1]. Group 2: Financial Performance - For the first half of fiscal year 2026, Honda reported sales revenue of 10.63 trillion yen (approximately 476.3 billion RMB), a year-on-year decline of 1.5% [2]. - Operating profit fell to 438.14 billion yen (approximately 19.6 billion RMB), down 41.0% year-on-year, while net profit decreased by 33.8% to approximately 348.66 billion yen (about 15.6 billion RMB) [2]. - The global automotive sales volume dropped by 99,000 units to 1.68 million, with a significant decline of 65,000 units attributed to the Chinese market [2]. Group 3: Sales Forecast and Market Challenges - Honda has revised its sales forecast for fiscal year 2026 from 3.62 million units to 3.34 million units, reflecting a decrease of 170,000 units due to declining sales in China and ASEAN, as well as semiconductor supply issues in North America [8]. - The company has adjusted its revenue forecast for fiscal year 2026 to 20.7 trillion yen, a reduction of 988.7 billion yen, and operating profit is now expected to be 550 billion yen, down 663.4 billion yen [7]. - Honda's electric vehicle (EV) sales have not met expectations, and the company has lowered its target for global EV sales from 30% to 20% by 2030 due to challenges in North America and Europe [11]. Group 4: Product Performance and Market Position - Honda's electrified vehicle sales showed significant growth outside of China, but the Chinese market has seen a decline in hybrid and plug-in hybrid vehicle sales, with a notable increase in pure electric vehicle sales [3][5]. - The company is struggling with the competitiveness of its fuel vehicles in the face of rapid growth in the new energy vehicle sector, leading to a significant drop in sales for models like the Fit [8][9]. - New electric models introduced in China have not performed well in the market, with cumulative sales failing to exceed 3,000 units in the past six months [9][10].