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    Inajima • Bloomberg

    Inajima's questions to Honda Motor Co Ltd (HMC) leadership

    Inajima's questions to Honda Motor Co Ltd (HMC) leadership • Q1 2026

    Question

    Mr. Inajima from Bloomberg asked about Honda's strategy to reverse 17 consecutive months of sales decline in China and requested an update on reported collaboration talks with Nissan.

    Answer

    Eiji Fujimura, CFO, acknowledged the difficult situation in China, stating that their 'ES series' EVs have underperformed due to misaligned pricing and a lack of expected 'intelligent functionality.' He outlined plans to expedite improvements through OTA updates and a partnership with Momenta for ADAS. Regarding Nissan, Mr. Fujimura confirmed that while Honda is exploring various collaborations, nothing has been finalized or officially announced.

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    Inajima's questions to Honda Motor Co Ltd (HMC) leadership • Q1 2025

    Question

    Inajima from Bloomberg asked if high foreign exchange volatility was a primary reason for not changing the full-year forecast and inquired about the potential impact of increased U.S. tariffs under a different administration.

    Answer

    Executive Eiji Fujimura confirmed that Forex uncertainty was a key factor in maintaining the forecast, along with absorbing the profit impact from lower volumes in China. Regarding potential tariffs, he noted that Honda's exposure is limited by its low volume of complete built-up unit imports to the U.S. and its complementary production network across North America, which could mitigate some effects.

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    Inajima's questions to Honda Motor Co Ltd (HMC) leadership • Q1 2025

    Question

    Inajima from Bloomberg followed up by asking if high foreign exchange volatility was a primary reason for not changing the full-year forecast and whether potential U.S. tariffs under a new administration could inadvertently benefit Honda.

    Answer

    Executive Eiji Fujimura confirmed that ForEx volatility is a key reason for maintaining the current forecast. He also noted that the negative profit impact from lower sales in China (affecting royalties and parts) is being absorbed by other efforts, allowing the JPY 1.24 trillion operating profit forecast to stand. Regarding potential tariffs, he stated it is difficult to predict the impact without specifics, but noted Honda's exposure is limited by not having large CBU (completely built-up) import volumes into the U.S. from many overseas regions.

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