Honda Motor reported a sharp fall in earnings for the six months to 30 September 2025, as softer electric vehicle (EV) demand weighed on profitability.
Half-year profit fell 33.8% to Y348.65bn ($2.27bn), with profit attributable to owners of the parent down 37% to Y311.82bn.
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Sales revenue for the period edged down 1.5% to Y10.63trn, compared with Y10.79trn in the prior-year first half.
Operating profit declined 41% to Y438.14bn. Earnings per share attributable to owners of the parent were Y76.30 (basic and diluted), versus Y103.25 in the same period last year.
Honda cited weakening EV demand and increased incentives in key markets as headwinds.
In a statement, the company said: “Due to the slowdown in the expansion of the electric vehicle market in regions such as North America and Europe, Honda has been experiencing impacts including lower EV sales units and higher sales incentives per unit than initially expected.”
It added that policy changes in the US, “including the abolition of tax incentives for EV purchases and the easing of emissions regulations, as well as the imposition of import tariffs,” are expected to further curb EV market growth.
Reflecting these trends, Honda cut its 2030 global EV sales ratio target.
“Due to the recent EV market slowdown, the Honda global EV sales ratio in 2030 is now expected to be 20%, lower than the previously announced target of 30%,” the company said.
Looking ahead, Honda issued guidance for the fiscal year ending 31 March 2026, projecting lower sales and steep declines across profit metrics.
It forecasts consolidated sales revenue of Y20.70trn. Operating profit is expected at Y550bn, down from the previous forecast of Y700bn.
The Japanese major is also planning to launch its first hybrid variant of full-size sport utility vehicle (SUV) for the North American market.
