Narahashi's questions to Honda Motor Co Ltd (HMC) leadership • Q1 2026
Question
Mr. Narahashi from Yomiuri Newspapers asked about the effective tariff rate on vehicles from Mexico and Canada after exemptions, the reasons for sales declines in Asia and Europe, and when the automobile division last posted a quarterly operating loss.
Answer
Eiji Fujimura, CFO, stated the last automotive operating loss was in fiscal year 2020 due to the pandemic. Regarding tariffs, he explained that a detailed review of USMCA rules has significantly reduced the effective tariff burden from Mexico and Canada, though he did not provide a specific rate. He attributed sales declines in Asia to increased competition from Chinese OEMs and a lag in launching hybrid models, while noting that the European business strategy is under review following past production closures.