Khaberni - "Honda Motor" announced a decline in its profits in the third quarter of the current fiscal year by 61% due to U.S. customs duties and the costs of restructuring its electric vehicle business amid weak demand.
The dire results of "Honda" follow more severe warnings from the global automakers "Ford" and "Stellantis," which have recently indicated significant losses related to their electric vehicle operations.
The demand for this technology has declined in markets like the United States, where customers are increasingly turning to hybrid (gasoline – electricity) vehicles promoted by "Toyota".
The second-largest car company in Japan reported that its operating profits were 153.4 billion yen (about 987.07 million dollars) for the period from October to December 2025, a decrease of 61.4% on a yearly basis, and came below the average expectations of analysts surveyed by LSEG, which amounted to 174.5 billion yen.
Noriya Kaihara, the executive vice president, stated during a business results briefing that "Honda" needs to enhance the competitiveness of its operations through a substantial restructuring of its strategy, amid intensified global competition, including the rise of new car companies.
The company kept its operating profit forecast for the fiscal year ending in March 2026 at 550 billion yen, equivalent to 3.52 billion U.S. dollars.
