Nagae's questions to Honda Motor Co Ltd (HMC) leadership • Q1 2026
Question
An analyst from TV Nagae inquired about Honda's approach to vehicle price increases to offset tariff costs and questioned why the full-year forecast appears conservative despite strong Q1 results.
Answer
CFO Eiji Fujimura stated that while price hikes are part of the plan to recover tariff costs, Honda is proceeding cautiously, monitoring the U.S. economy and competitor pricing. He explained the forecast's conservatism is due to several factors: a JPY 140/USD exchange rate assumption, historically higher SG&A and R&D expenses in the second half of the fiscal year, and an initial forecast that included a buffer for a potential recession which has not yet materialized.