Africa-Press – Tanzania. Japanese automaker Honda Motor said Tuesday it expects a 58.8% fall in operating profit for the current financial year, citing tariff-related costs.
Honda now forecasts a full-year operating profit of 500 billion yen ($3.38 billion) for the year ending March 31, 2026, compared to 1.21 trillion yen ($8.17 billion) in the previous year, the company said in a statement.
The company cited a loss of 450 billion yen ($3 billion) due to “tariff impact and recovery efforts for tariff impact” in its full-year profit outlook.
For the financial year ended March, Honda posted revenue of 21.69 trillion yen ($146.63 billion), marking a 6.2% year-on-year increase.
Operating profit fell 12.2% to 1.21 trillion yen ($8.18 billion), while net profit declined 24.5% to 835.84 billion yen ($5.65 billion).
The profit forecast came as the auto industry faces growing pressure from the emergence of Chinese electric vehicle producers and higher tariffs under former US President Donald Trump’s trade policies.
The US has imposed a 25% tariff on foreign-made vehicles, creating uncertainty in the sector.
Meanwhile, Honda and Nissan ended merger talks earlier this year. The proposed $60 billion deal would have created the world’s third-largest automaker by sales volume.
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