Honda's Profit Cut in Half Amid Tariff Woes: A Resilient Path Forward
Honda reported a significant profit decline due to 25% tariffs on vehicle exports to the US. The company posted a quarterly profit of 196.7 billion Yen, a marked reduction from the previous year. Despite these challenges, Honda has revised its full-year profit forecast upwards and remains committed to global competitiveness.
- Country:
- Japan
Honda's profits have taken a substantial hit, halved from the previous year, as the automotive giant grapples with a hefty 25% tariff on vehicle exports to the United States.
In its financial report, the Tokyo-based automaker announced an April-June profit of 196.7 billion Yen, around USD 1.3 billion, a significant drop from 394.7 billion Yen last year. Quarterly sales also saw a slight decline of 1.2%.
Despite these figures, Honda revised its full-year profit forecast to 420 billion Yen, showing resilience in adversity. Sales targets remain ambitious, with a goal of 3.62 million vehicles globally, underscoring steady motorcycle sales in Brazil and Vietnam, and strong North American performance.
(With inputs from agencies.)
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