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Honda Motor Co: How Policy Shifts, EV Timing, and Costs Collide in Its Next Chapter!

Honda Motor Company Limited reported mixed financial results for the third quarter of the fiscal year ending March 2026. Operating profit for the quarter stood at JPY 591.5 billion, although this figure reflects a significant decline of JPY 548.4 billion compared to the previous year. The company reported record highs in unit sales, operating profit, and operating margin up to the third quarter, largely driven by robust motorcycle sales in regions like India and Brazil. However, the automobile segment experienced a downturn in profitability, primarily due to nonrecurring expenses related to electric vehicles (EVs) and tariffs. The company’s financial health remains strong, with operating cash flow after adjustments for research and development amounting to JPY 1.8558 trillion, a level consistent with the previous year. Despite headwinds, Honda maintained its full-year operating profit forecast at JPY 550 billion and net profit at JPY 300 billion.