Financial Data and Key Metrics Changes - The operating profit for the third quarter was JPY 591.5 billion, achieving record high unit sales, operating profit, and operating margin [2][4] - Operating cash flow after R&D adjustment was JPY 1,855.8 billion, consistent with the same period last year [3] - The forecast for operating profit for the fiscal year ending March 2026 remains at JPY 550 billion, with profit for the year also unchanged at JPY 300 billion [3][5] Business Segment Data and Key Metrics Changes - Motorcycle operations achieved cumulative sales of 16.44 million units, driven by strong sales in India, Pakistan, and Brazil [7] - Automobile operations reported sales of 2.561 million units, reflecting a decline primarily due to semiconductor shortages [7] - The power products business sold 2.507 million units, with mixed results across regions [7] Market Data and Key Metrics Changes - The competitive environment for automobiles in Asia is expected to intensify, necessitating increased incentives [3] - The impact from tariffs was initially forecasted at JPY 450 billion but has been revised down to JPY 310 billion [3][5] - The exchange rate against the U.S. dollar is assumed at 140 JPY for the full-year period, with potential upside from yen depreciation [5][12] Company Strategy and Development Direction - The company aims to build flexible business characteristics to adapt to changing environments and enhance product features and cost competitiveness [15][16] - A fundamental review of strategies is underway to rebuild competitive strength in light of stagnated EV market growth and intensified competition from emerging OEMs [14][15] - The company is focusing on launching next-generation hybrid systems and enhancing the earning capability of hybrid models [15] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges such as stagnated EV market growth, less stringent environmental regulations, and heightened supply chain risks [14] - The company is maintaining its forecast despite uncertainties in the business environment, indicating cautious optimism for the fourth quarter [3][28] - Management emphasized the need for disciplined expenditure control and a review of capital expenditure plans aligned with market conditions [15][28] Other Important Information - The board of directors approved the cancellation of 747 million treasury stocks [6] - The company has adopted a DOE indicator to ensure stable returns and dividends aligned with growth, even in volatile environments [16] Q&A Session All Questions and Answers Question: Full year outlook and automobile profitability - Management indicated that while expenses are expected to increase in the fourth quarter, the overall outlook remains unchanged, with a focus on managing BEV-related costs and incentives [21][25][28] Question: EV market trends and strategy - Management acknowledged the need to revisit EV strategies due to negative demand environments and competition from local manufacturers in China [31][33] Question: Tariff impact and sales situation - Management explained that tariff impacts have decreased from initial forecasts, with recovery plans in place to mitigate costs [43][45][46] Question: Rare earth metals supply concerns - Management confirmed reliance on China for rare earth metals and emphasized the need for timely export applications and inventory management [50][52] Question: Collaboration with other companies - Management stated that while discussions with Nissan continue, they are open to exploring collaborations with other companies to reduce development costs [56][62]

Core Insights - Kia Corporation, South Korea's second-largest automaker, experienced a 23% decline in net profit to KRW 7.55 trillion (US$ 5.3 billion) in 2025, primarily due to the impact of US import tariffs [1][6] Financial Performance - Revenue increased by 6.2% to a record KRW 114.1 trillion (US$ 80 billion), with global vehicle sales rising by 1.5% to 3.14 million units [2] - Operating profits fell by 28% to KRW 9.08 trillion (US$ 6.4 billion) as the company absorbed increased costs from US tariffs [3] Impact of US Tariffs - The introduction of US import tariffs cost Kia approximately KRW 2.9 trillion in lost earnings in 2025, with expectations of this rising to KRW 3.3 trillion in 2026 [4] - The US government imposed a 25% tariff on vehicle and component imports from South Korea in April 2025, later reducing it to 15% in November, although discussions on this matter are ongoing [3] Future Outlook - Kia forecasts a 6.8% increase in global vehicle sales to 3.35 million units in 2026, projecting revenues of KRW 122.3 trillion and an operating profit of KRW 10.2 trillion [5] - The company plans to expand its SUV and hybrid lineup in the US, launch new BEV models in Europe, and strengthen its SUV range in India with the new Seltos [5]

Core Insights - Ford reported an increase in auto sales in the U.S. for 2025, driven by strong consumer demand for its hybrid models and affordable pickup trucks, which helped to mitigate the decline in electric vehicle sales [1] Group 1 - The company experienced higher auto sales in the U.S. in 2025 [1] - Strong consumer appetite for hybrid models contributed significantly to the sales increase [1] - Affordable pickup trucks played a crucial role in offsetting the slowdown in electric vehicle sales [1]

Core Insights - Toyota Motor Corp reported an increase in global vehicle sales for the eighth consecutive month in August, driven by strong demand for hybrid models in the United States despite weaker domestic sales [1] Group 1 - Global vehicle sales rose for the eighth consecutive month in August [1] - Strong demand for hybrid models in the United States contributed to the sales increase [1] - Domestic sales showed signs of weakness, contrasting with the performance in the U.S. market [1]

Core Insights - Toyota Motor reported an increase in global sales for the eighth consecutive month in August, driven by strong demand for hybrid models in the United States, despite a decline in performance in Japan [1] Sales Performance - Global sales growth continued for eight months, indicating a positive trend in demand for Toyota vehicles [1] - The strong performance in the U.S. market, particularly for hybrid models, played a crucial role in offsetting weaker sales in Japan [1]

Core Viewpoint - The Swedish automaker is planning to increase the launch of hybrid models specifically targeting U.S. drivers [1] Group 1 - The company aims to cater to the growing demand for hybrid vehicles in the U.S. market [1] - The initiative reflects a strategic shift towards more environmentally friendly options in response to consumer preferences [1] - The automaker's focus on hybrid models aligns with broader industry trends towards sustainability and reduced emissions [1]

Core Insights - Honda is reducing its EV investment by 30% from $69 billion to $48.4 billion through the 2031 fiscal year to stabilize its future in a slowing EV market [1][2] - The company will focus on increasing its hybrid lineup due to changes in environmental regulations and a slowdown in EV market expansion [2] - Honda's expected EV sales ratio for 2030 is now projected to fall below the previously announced target of 30% [2] Investment Strategy - Honda plans to launch 13 new hybrid models globally starting in 2027, aiming to sell 2.2 million hybrids annually by 2030 [4] - Despite the shift towards hybrids, Honda remains committed to achieving 100% zero-emission vehicle sales by 2040 [4] Market Context - In the first four months of 2025, EV sales in North America increased by only 5%, compared to 25% in Europe and 35% in China [3] - The International Energy Agency indicated that higher tariffs could further increase EV prices and slow down sales growth [3] Organizational Changes - Honda is mandating US employees to return to the office at least 80% of the time by October, emphasizing the importance of in-person work in a rapidly changing business environment [5]