By bno - Taipei Office Japan’s once-unshakeable auto industry is facing a dramatic reckoning as major manufacturers struggle with tumbling profits, global trade tensions and internal upheaval. In just the past few days,

The logo signboard of Japanese automaker Honda Motor atop a showroom in Tokyo on Feb. 6, 2025. Key Takeaways. Honda Motor said new U.S. auto

Honda's forecast is the latest signal of the difficulty car makers are having navigating tariffs alongside the rise of Chinese EV producers.

Tariffs could cost Japan's second-largest automaker up to 650 billion yen this financial year—equivalent to $4.4 billion and almost half last year’s profit. Reporting results Tuesday, Honda forecast a roughly two-thirds slide in operating profit for the year through March 2026,

Japanese auto giant Honda missed fourth-quarter earnings estimates as operating profit plunged 76%, with the company bracing for the full impact of U.S. tariffs. Honda's fourth quarter ends March 31.

While most Japanese manufacturers have attempted to build a luxury legacy, three have decided to stay in their lane and stick to what they know.

The Nikkei 225 Index has rebounded in the past few weeks as optimism on trade prevailed. After bottoming at ¥30,770 in April, it has surged by over 21%, entering a technical bull market. It is now hovering at its highest level since March 27,