Honda China May Sales Plunge 48.7% YoY; First Operating Loss Expected in FY2025

Honda China reported terminal vehicle sales of 28,279 units in May 2026, a 48.7% year-over-year decline from 55,108 units in May 2025. Cumulative sales from January to May 2026 totaled 173,344 units, down 32.5% compared to 256,684 units during the same period in 2025. Additionally, Honda expects its consolidated operating loss for fiscal year 2025 (ended March 2026) to reach approximately JPY 400 billion, compared to an operating profit of JPY 1.2134 trillion in the previous fiscal year. This marks the company's first-ever operating loss since going public, primarily driven by losses in its electric vehicle-related businesses. Honda plans to return to profitability in fiscal year 2026 through strong performance in segments such as its motorcycle business.