The Tokyo-based company said strong sales of two-wheelers more than offset the higher losses.
Published November 7, 2025
Honda’s profits fell in the first half of this year through September as US President Donald Trump’s tariffs weighed on Japanese car and motorcycle brands.
On Friday, Honda announced a 37% drop in profits.
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Tokyo-based Honda Motor Co. posted a profit of 311.8 billion yen ($2 billion) in the April-September period, down from 494.6 billion yen ($3.2 billion) in the same period a year earlier. Sales for the six months totaled 10.6 trillion yen ($69 billion), down 1.5% from approximately 10.8 trillion yen ($70.5 billion).
Honda cut its profit forecast for the fiscal year ending March 2026 to 300 billion yen ($2 billion), down 64% from 835.8 billion yen ($5.4 billion) a year earlier. The company previously expected full-year profit to be 420 billion yen ($2.7 billion).
Honda, which makes the Accord sedan and Odyssey minivan, said unfavorable exchange rates also hurt profits, wiping 116 billion yen ($756 million) from its six-month operating profit.
However, Honda achieved record sales for motorcycles, driven by strong performance in Asia excluding Vietnam. Honda announced that it sold more than 9 million motorcycles in Asia in the first half of the year, up from 8.8 million units in the same period last year.
Honda’s motorcycle sales increased in all regions of the world except Europe, reaching a record high of 10.7 million units sold.
Honda’s global sales in the first half of the year decreased from 1.78 million units to 1.68 million units. By region, automobile sales increased in North America, but decreased in Japan, the rest of Asia, and Europe.
It helps that Honda makes many of its vehicles in the United States, but the company said operating profit fell by 164 billion yen ($1.1 billion) over the six-month period due to the impact of the tariffs.
Honda is facing a chip shortage after the Dutch government took control of Nexperia, a subsidiary of Dutch-based Chinese company Wingtec Technology, in late September, citing national security concerns.
In response, China blocked shipments of chips from Nexperia’s factory in the southern Chinese city of Dongguan, but has now allowed exports to resume.
Vehicle production at Honda’s factory in Celaya, Mexico, has been suspended since October 28th, while production at its North American plants has been adjusted since October 27th due to supply disruptions related to Nexperia. Honda did not say when production would return to normal levels.
