Narahashi's questions to Honda Motor Co Ltd (HMC) leadership • Q1 2026
Question
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.