Although Honda sold more motorcycles globally in the first fiscal half, boosted by healthy demand in Asia, its car sales fell, especially in China, company officials told reporters.
Warranty costs and expenses related to quality problems, as well as higher incentives, also chipped away at Honda’s profits, while foreign exchange fluctuations added drag, according to Tokyo-based Honda. The company did not break down quarterly numbers.
Honda lowered its profit forecast for the fiscal year through March by 50 billion yen ($330 million) to 950 billion yen ($6.2 billion).
That’s lower than the 1.1 trillion yen ($7.2 billion) Honda earned last fiscal year.
Domestic rival Toyota Motor Corp. reported a drop in profit earlier in the day. Nissan Motor Co. reports earnings Thursday.
Honda stock dove 6.5%, while Toyota issues gained 1.7%.
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Yuri Kageyama is on X: https://x.com/yurikageyama