Under Pressure, Honda Revises Sales Target by 21 Percent

KatadataOTO – Honda has revised its annual profit target, lowering it by up to 21 percent from the previous forecast. This revision was made due to various pressures the company is facing.

These range from government policies and declining sales in China to a shortage of spare parts. As a result, Honda has had to adjust to a more realistic target.

For the 2026 fiscal year, Honda is only targeting a profit of 550 billion Yen. That amount is equivalent to IDR 59.596 trillion.

Previously, they were optimistic about achieving a profit of 770 billion Yen (IDR 83.4 trillion).

Photo : TrenOto

The revision was made after they experienced various losses in the first half of the year. A large part of this was due to the cost of manufacturing electric vehicles.

The value even reached 224 billion Yen, or the equivalent of IDR 24.2 trillion. The EV sales ratio for 2030 has also been reduced from 30 percent to 20 percent.

Honda estimates it will only be able to sell 925,000 units in Asia by the end of the fiscal year. That number is down 10 percent from the previous 1.09 million units.

Competition in Southeast Asia is considered tough with the massive arrival of Chinese manufacturers. Moreover, the prices offered are very competitive and come with incentives.

“We realize we must review the Asian market. Especially since there are no truly new cars coming in the near future,” said Noriya Kaihara, Executive Vice President of Honda.

The manufacturer was also hit by a chip shortage from a Dutch company. The losses reached 150 billion or IDR 16.2 trillion.

“The disruption was caused by Honda's dependence on a single supplier for several components,” he explained.

The chip shortage has hampered the production process at the Mexico plant. However, Honda hopes the situation will begin to normalize on November 21, 2025.

Honda also expects to suffer a loss of 385 billion yen or IDR 41.7 trillion. This is because the United States has imposed import tariffs on vehicles.

Fortunately, Honda has been producing hybrid vehicles locally, and demand remains high.