How has the competition from Chinese EV makers affected Honda's sales in Southeast Asia?

Honda's retail sales have plunged nearly 30% in Indonesia, 18% in Malaysia, and 12% in Thailand over the first nine months of 2025 compared to the same period last year, as competition from Chinese EV makers such as BYD has become increasingly difficult for Japan's automakers in the region.

What is the impact of the chip shortage on Honda's operations?

The chip shortage has forced a factory shutdown in Mexico and production adjustments in the U.S. and Canada, contributing to a 150 billion yen ($994.83 million) hit to Honda's operating profit outlook.

How is Honda's automotive division performing compared to its motorcycle division?

Honda's automotive division has reported an operating loss for the third straight quarter, lagging behind the performance of its motorcycle division, which delivered record profits. Experts suggest that Honda may need to consider splitting its four-wheel and two-wheel businesses to address this "unbalanced" profitability gap.

Home / Business and Economy / Honda Battles Chinese EV Rivals and Supply Chain Woes, Cuts Profit Forecast

Honda Battles Chinese EV Rivals and Supply Chain Woes, Cuts Profit Forecast

11 Nov

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Summary

Honda cuts full-year profit outlook by 20% due to EV costs, chip shortages
Faces intensifying competition from Chinese EV makers in Southeast Asia
Motorcycle division thriving, but automotive business in "dire situation"

Honda Battles Chinese EV Rivals and Supply Chain Woes, Cuts Profit Forecast

As of November 11th, 2025, Honda Motor Co. is facing a multitude of challenges that have led the company to downgrade its full-year profit outlook by a fifth. The immediate pressures stem from U.S. tariffs and global chip shortages, but the deeper, longer-term concern lies in the intensifying competition from Chinese electric vehicle (EV) makers in the Asian market.

Honda has estimated a 385 billion yen ($2.6 billion) hit from U.S. tariffs, although this is less than the 450 billion yen originally flagged. The company also cited one-off EV costs and a shortage of components using chips from the Netherlands-based Nexperia, which the Dutch government took control of in late September 2025 after it was acquired by China's Wingtech.