by Honda has released its global sales figures for the fiscal year ending March 31, 2025, offering a clear view of its performance in a dynamic market environment.
🌍 Global Annual Sales
- Total global vehicle production: ~3.64 million units in FY 2025, down from 4.12 million in FY 2024 – an 11.5% year-over-year decline.
- Japan domestic production: 692,593 units (2% down YoY).
- Overseas production: 2.95 million units, down 13.5% from FY 2024.
- Export volumes from Japan also decreased across most regions, particularly Europe and Asia.
🇺🇸 Performance in the US
- Q1 FY 2025 (Jan–Mar):
- Sales hit 351,577 vehicles, with March alone at 147,792 — a 13.2% increase YoY.
- Electric vehicles (EVs): Honda sold over 14,000 electrified units (e.g. the Prologue and Acura ZDX), contributing to +10% YoY growth in US EV sales.
- January snapshot:
- U.S. sales totaled 96,774 units, up 3.8% from January 2024.
🔋 Electrification Gains
- Honda’s Prologue EV sold 9,561 units and Acura’s ZDX added 4,813 units in Q1.
- In the U.S., electrified vehicles accounted for 24.4% of new sales across brands in Q1 2025, driven significantly by hybrid and plug-in models.
📈 Financial Snapshot
- For FY 2025, Honda projects:
- Sales revenue rising ~5.7% to ¥21.6 trillion.
- Operating profit up slightly to ¥1.42 trillion.
- However, full-year global vehicle sales outlook was lowered from 3.8 million to 3.75 million units, reflecting weaker demand, especially in China.
📉 Profit Pressure & Market Context
- FY 2025 earnings dropped sharply, with annual profit falling 24.5% to ¥835.8 billion. Honda cited China market weakness, R&D costs, and looming U.S. tariffs as main factors.
- Looking ahead to FY 2026, projected operating profit is set to plunge further—by 70% to ¥250 billion—as tariffs and investments in EVs weigh heavily.
🔍 Key Takeaways
- Global sales dip ~11%, driven by production cuts in and outside Japan.
- Strong US performance, especially in Q1 and early-year months.
- EV momentum in America, with signs of growing consumer appetite.
- Challenging financial backdrop, with shrinking profits, China slowdown, and tariff uncertainty overshadowing sales.
🧭 Final Word
Honda sold about 3.64 million vehicles worldwide in FY 2025, with a robust start in the U.S. and promising electrification strides. Still, production cutbacks and profit headwinds underscore the challenges ahead. Stronger EV momentum and tariff navigation will be crucial as Honda aims for renewed growth in FY 2026.
