Honda Reports Lower Profits As China Sales Decline

Honda’s profits dropped nearly 20% in the first half of the fiscal year compared to the same period the previous year, impacted by weaker sales in China, the Japanese automaker reported, Yuri Kageyama wrote for the Associated Press (AP).

Honda saw increased global motorcycle sales due to strong demand in Asia but its car sales dropped, particularly in China. I Photo: Honda Facebook

Honda Motor Co.’s profits from April to September totaled 494.68 billion yen ($3.2 billion), down from 616 billion yen in the same period last year, on sales of 10.8 trillion yen ($70.5 billion), up from 9.6 trillion yen.

While Honda saw increased global motorcycle sales due to strong demand in Asia, its car sales dropped, particularly in China, according to company officials.

Warranty costs, quality-related expenses, and higher incentives also weighed on profits, with foreign exchange fluctuations adding further drag, the Tokyo-based company reported.