Honda Motor’s Q4 operating profit plummeted 76%

Recently, Japanese auto giant Honda Motor handed in a shocking financial report. Its fourth-quarter operating profit plummeted 76% year-on-year, and its performance was far below market expectations. At the same time, it also faced the dual dilemma of the impact of US tariff policies and the slowdown in demand for electric vehicles.

The financial report shows that Honda Motor’s fourth-quarter revenue was 5.36 trillion yen, which was the same as the market’s expectation of 5.36 trillion yen. Behind the seemingly stable revenue, there is a huge crisis in operating profit. Honda Motor’s operating profit in this quarter was only 73.5 billion yen, while the market had previously expected a value of 275.52 billion yen. The actual data was far from expectations, with a plunge of 76%. Such a large decline in profits has undoubtedly sounded the alarm for Honda Motor and has also caused market concerns about its future development.

In addition to the decline in performance, Honda Motor is also preparing for the full impact of US tariff policies. The company expects that the tariff policy will drag down operating profits by up to 650 billion yen in the 2025-2026 fiscal year. As one of Honda’s important overseas markets, the adjustment of the tariff policy in the United States will undoubtedly have a significant impact on its sales costs and profit margins. The increase in tariffs will directly lead to an increase in Honda’s product prices in the US market, which may in turn affect its sales and market share.