Narahashi

Mr. Narahashi from Yomiuri Newspapers asked for clarification on the automobile segment's operating loss, the effective tariff rate on vehicles from Mexico and Canada, and the reasons for sales declines in Asia, Europe, and Japan.

Answer

An executive, likely CFO Eiji Fujimura, confirmed the last quarterly operating loss for the auto business was in fiscal year 2020 due to the pandemic. He stated that while the effective tariff rate on imports from Mexico and Canada has been reduced after closer review, he could not disclose the specific number. Regarding regional sales, he attributed declines to intensified competition from Chinese OEMs in some Asian markets and the need to reinforce Honda's hybrid model lineup to compete more effectively.

Narahashi from Yomiuri Newspapers asked for clarification on the automobile segment's operating loss, the effective tariff rate for vehicles from Mexico and Canada, and the reasons for sales declines in Asia and Europe.

Answer

Eiji Fujimura, CFO, confirmed the auto segment's last operating loss was in FY2020 due to the pandemic. He stated that the effective tariff on North American imports was reduced after review but declined to give a specific rate. He attributed Asian sales declines to intense competition from Chinese OEMs and varied hybrid demand, while noting Europe remains a challenging market requiring a strategic review.

Asked for clarification on when the automobile operation last posted a quarterly loss, the expected effective tariff rate for North American imports after exemptions, and the reasons for sales declines in Asia, Europe, and Japan.

Answer

The last quarterly auto loss was in FY2020 due to the pandemic. The effective tariff rate on North American imports is significantly reduced by exemptions, though specifics were not shared. Sales declines are attributed to intensified competition from Chinese OEMs in Asia, a lag in launching hybrid models in key markets, and a strategic need to re-evaluate the struggling European business.