HMC

Market Trends: The foreign automotive industry is experiencing mixed results, with strong growth in China driven by new-energy vehicles and government support, while Japan shows stable recovery and Europe faces declining sales due to competitive pressures and policy challenges.

Company Performance: Honda, Geely, and NIO are highlighted as key players poised for growth, with Honda focusing on hybrid sales, Geely expanding its multi-energy strategy, and NIO enhancing its electric vehicle offerings amid a competitive landscape.

Toyota's Financial Impact from Tariffs: Toyota warned of a $9.5 billion hit to its operating income due to President Trump's tariffs, revising its profit forecast down by 16% for the fiscal year ending March 2026.

Industry Response and Production Adjustments: Both Toyota and Honda are increasing U.S. production to mitigate tariff impacts, with Honda also raising its full-year profit forecast despite reporting a significant drop in operating profits.

Honda's Financial Performance: Honda reported a 50% decline in operating profits for the first quarter, totaling 244.17 billion yen, which fell short of estimates due to U.S. tariffs and a stronger yen, despite revenue exceeding expectations at 5.34 trillion yen.

Impact of U.S. Tariffs and Trade Negotiations: The company is facing challenges from U.S. tariffs on imported vehicles, leading to price cuts on shipments, while Japan's Prime Minister and chief trade negotiator are actively seeking to expedite a reduction in these tariffs following a new trade deal with the U.S.