The second largest car manufacturer in Japan, Honda, announced this Tuesday that it expects a 59% drop in profits for the current fiscal year, which ends in March 2026.
Honda’s forecasts indicate that the operating profit will total $3.38 billion by the end of the current fiscal year, representing a sharp decline compared to the results from the year that just ended.
These newly revealed figures are yet another sign of the difficulties the automotive sector is facing with tariffs on automobiles, while at the same time the sector is being shaken by competition, particularly from China, in the electric vehicle market.
The Japanese brand also announced that it will suspend its plan to build an electric vehicle charging network in Canada for two years, due to uncertainty regarding the tariffs on exports imposed by U.S. President Donald Trump, as well as the current slowdown in demand for electric vehicles.
“Although the automotive industry is in a very difficult situation, we will definitely seek new directions for growth through strategic partnerships”, said Toshihiro Mibe, CEO of Honda, during a press conference.
The head of Japan’s second-largest car manufacturer also clarified that there has been no development in the potential partnership with Nissan since the negotiations were canceled in February.
