📊Executive Summary

Honda has revised its annual profit forecast downward due to a shortage of critical semiconductors, now projecting ¥550 billion (US$3.6 billion) for the fiscal year ending March 2026, down from ¥700 billion. This adjustment is attributed to production constraints caused by semiconductor shortages and a decline in EV demand, particularly in Asia. Honda has also reduced its global auto sales forecast from 3.62 million to 3.34 million units. The company has faced production halts at North American plants due to export restrictions on Nexperia, although shipments have resumed. The article highlights a longer-term concern regarding EV demand, with Honda lowering its expected ratio of EV sales from 30% to 20% by 2030, influenced by the end of US tax credits and competitive pressures in China....