Honda Motor Co. Ltd. Technical Analysis - Honda Motor Co. Ltd. Trading: 2025-08-08

Japanese automaker Honda Motor raised its profit forecast after Japanese trade negotiator Ryosei Akazawa indicated the previous day that the effective US tariff rate on Japanese goods will be capped at 15%. Honda had reported a 1.2% drop in global revenues to JPY 5,340.3 billion in the first quarter of the current fiscal year, between April and June 2025. The company’s operating profit plunged by almost 50% to JPY 244.1 billion, while net profits were also down by 50% to JPY 197 billion. The automaker has revised upward its operating profit forecast for the full fiscal year, to JPY 700 billion from JPY 500 billion previously, in light of the recently negotiated US import tariffs, which were cut from 25% to 15% at the beginning of August. This is still down sharply from the JPY 1,213 billion operating profit in the previous fiscal year even after lowering the estimated impact of the US tariffs over the full fiscal year to JPY 450 billion. Net profits for the full year are expected to drop by almost 50% to JPY 420 billion, up from its previous forecast of JPY250 billion. Lower impact estimates from US tariffs are bullish for Honda stock price.