Honda Motor Maintains Forecasts Amid Tariffs, EV Costs; Motorcycles Remain Strong

Honda Maintains Forecasts as Tariff Headwinds and EV Costs Weigh on Autos

Honda Motor Co. posts a fiscal third-quarter operating profit of 591.5 billion yen and reports operating cash flows after R&D adjustment of 1,855.8 billion yen, underscoring continued cash strength even as the automobile division faces pressure. Motorcycle sales remain a bright spot, driven primarily by robust demand in India and Brazil, supporting a record‑high motorcycle unit forecast. The company presents the results as it keeps its full-year operating profit forecast unchanged, citing an uncertain business environment.

Automobile profits decline in the quarter mainly because of tariff impacts and one‑time expenses tied to electric vehicle programmes, Honda says. Coordinated actions with suppliers help reduce the expected tariff hit from an initial −450 billion yen to −310 billion yen, and a weaker yen provides a positive profit effect. Still, intensified competition across Asian auto markets prompts higher incentive spending, and Honda therefore holds its November 7 forecasts steady: 550.0 billion yen in operating profit and 300.0 billion yen in profit for the fiscal year ending March 31, 2026.

Management also leaves volume projections intact, maintaining a motorcycle unit forecast of 21.3 million units and an automobile unit forecast of 3.34 million units as it balances near‑term profitability with investments in electrification. The results and commentary signal Honda’s strategic focus on cost mitigation and supplier collaboration while pressing ahead with EV development, even as one‑time charges and market incentives complicate near‑term earnings visibility.

Share Cancellation and Capital Move

Honda announces a cancellation of 747,000,000 shares of common stock to take effect on Feb. 27, 2026, leaving 4,533,000,000 shares issued after cancellation. The move follows the earnings release and is presented alongside the company’s investor materials, without immediate commentary on broader capital policy changes.

U.S. Autonomous Vehicle Legislation Could Affect OEMs

Separately, U.S. lawmakers advance the SELF DRIVE Act out of the House Energy and Commerce Committee in a narrow 12–11 vote, seeking a federal framework for autonomous vehicles. Supporters say nationwide standards would aid manufacturers in scaling testing and deployment; critics warn against pre‑empting state authority and call for stronger safety oversight — developments that could shape how Honda and other automakers design and certify AV technology for U.S. markets.