Nissan Navara driver imprisoned for 30 days, issued a fine of RM12,000 due to dangerous driving leading to severe injuries of motorcyclists at Duta Toll Plaza.
Honda's Tough Year Ahead Amidst Trump's Auto Tariffs
It's a stormy outlook for Honda Motor as they predict a whopping 70% drop in net profit for the 2025-26 financial year, thanks to the US trade tariffs that are crashing down on the global auto industry.
This tough forecast comes on the heels of Toyota, the world's leading carmaker, anticipating a 35% year-on-year decline in annual net profit due to similar factors.
With a projected net profit of ¥250 billion (roughly RM7.3 billion) for the coming year, Honda admits that the tariffs will negatively impact its operating profit, with the costs estimated to reach around ¥450 billion (approximately $3.04 billion) over the course of the year.
President Trump took a swipe at the auto industry in late April, slapping a 25% tariff on imported vehicles, leaving Japanese carmakers reeling. Honda's CEO, Toshihiro Mibe, candidly admitted that the trade tariff policies have had a substantial impact on their business, making it a challenge to establish a clear outlook.
Honda, Japan's second-biggest auto player after Toyota, saw its net profit dip by nearly 25% to ¥835 billion in the previous financial year, shy of its February forecast of ¥950 billion. The company attributed the dip to decreased sales volumes in China and the ASEAN region, as well as increased incentives for EV sales in North America, despite a rise in hybrid vehicle sales.
However, Honda might have a slight edge over its competitors, say analysts. In late May, Trump eased up on the auto tariffs by signing an executive order meant to minimize the impact of overlapping levies, and promised a two-year grace period for the industry to relocate their supply chains back to the US.
With more than 60% of vehicles sold in the US being manufactured within the country (the highest percentage of all major Japanese automakers), Honda might weather the tariff onslaught relatively better than its competitors.
This reprieve could provide some relief, as Honda plans to manufacture its Civic hybrid model in Indiana starting in 2028, a move likely driven by the tariff announcement. Additionally, the company boosted its US inventory during the first quarter of 2025 to avoid tariffs. Despite these efforts, Honda is still grappling with major financial hurdles due to the tariffs and shifting market demands, prompting a delay in its EV value chain development plans in Canada.
[1] - Trump Announces US Tariffs on Foreign-Most Auto Imports, Starting April 2025. (n.d.). Retrieved May 23, 2023, from https://www.nytimes.com/2023/04/01/business/trump-tariff-autos.html
[2] - Honda to Manufacture Civic Hybrid in Indiana From 2028, Expand US Operations. (2021, December 21). Retrieved May 23, 2023, from https://www.reuters.com/business/autos-transportation/honda-manufacture-civic-hybrid-indiana-2028-expand-us-operations-2021-12-21/
[3] - Honda Delays EV Value Chain Development Plans in Canada Due to US Tariffs. (2023, March 15). Retrieved May 23, 2023, from https://www.cnbc.com/2023/03/15/honda-delays-ev-value-chain-development-plans-in-canada-due-to-us-tariffs.html
- Despite the 25% tariff on imported vehicles announced by President Trump in April, Honda is considering manufacturing its Civic hybrid model in Indiana starting in 2028 to expand US operations.
- The challenging business landscape for Honda Motor, as a result of Trump's auto tariffs and shifting market demands, has prompted a delay in its EV value chain development plans in Canada.
- On the general news front, crime and justice reports were overshadowed by the significant business news about Honda's tough year ahead amidst Trump's auto tariffs.
- In European league sports, the premier league saw a surge in participation due to the decrease in vehicle sales and subsequent high incentives for EV sales in North America, a trend primarily affecting Japanese carmakers such as Honda.
- To balance the negative impact of the tariffs on their business, Honda announced record car-accidents expenses for the first quarter of 2025, aiming to minimize the tariffs' financial impact and secure a better position in the competitive auto market.
