Honda forecasts 59% profit drop for FY26

World World: Japan’s leading automobile company Honda Motor has forecast a 59% drop in profit for the upcoming financial year 2026. The company says that it is facing financial challenges due to tariffs imposed by US President Donald Trump and increasing pressure from Chinese EV manufacturers. Honda forecast 500 billion yen ($3.38 billion) operating income for the financial year 2026, compared to 1.21 trillion yen last year.

In addition, Honda has decided to postpone its plan, under which the company had announced in April 2024 to build an EV supply chain in Ontario, Canada. The company says that this plan has been postponed for about two years in view of the current slowdown in EV demand.