Nagae's questions to Honda Motor Co Ltd (HMC) leadership • Q1 2026
Question
Mr. Nagae from TV Tokyo inquired about Honda's strategy for vehicle price increases in response to tariffs and questioned the reasoning behind what appears to be a conservative full-year forecast despite strong Q1 progress.
Answer
Eiji Fujimura, CFO, explained that while price hikes are part of their tariff recovery plan, they are proceeding cautiously as competitors have not followed suit. He justified the full-year forecast by noting that the strong Q1 benefited from a favorable exchange rate revision and that significant expenses, such as SG&A and R&D, are typically weighted more heavily in the second half of the fiscal year. He maintained the forecast was based on the best information available at the time.