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By Kosaku Narioka

  Honda Motor shares fell after it cut its fiscal-year earnings guidance on weaker car sales in Asia and a nearly $1 billion drag due to shortage of chips from Dutch supplier Nexperia. 

  Shares were recently 4.8% lower at 1,509.0 yen on Monday in Tokyo after falling as much as 5.2% earlier. The benchmark Nikkei Stock Average was recently 0.8% higher. 

  The Japanese automaker said after Friday's market close that it projected revenue to decline 4.6% to Y20.700 trillion, equivalent to $134.92 billion, and net profit to fall 64% to Y300.00 billion for the fiscal year ending March 2026. It previously projected revenue of Y21.100 trillion and net profit of Y420.00 billion. 

  Honda cut its annual car sales forecast, citing slumping sales in Asia and the chip crunch amid a dispute between the Dutch and Chinese governments over control of the semiconductor maker. 

  Honda now expects group car sales of 3.34 million units this fiscal year, down from 3.62 million units forecast earlier. Sales fell 5.6% to 1.68 million vehicles for the six months ended Sept. 30. 

  Executive Vice President Noriya Kaihara said that demand is weaker in some Southeast Asian nations and competition is intensifying in countries like Thailand as rival carmakers offer sales incentives and lower auto prices to compete with emerging Chinese players. 

  Honda expects the chip shortage to weigh on annual operating profit by Y150.0 billion. Kaihara said the carmaker is working to restore production in the week of Nov. 21, as shipments of Nexperia chips from China appeared to be resuming. 

  Write to Kosaku Narioka at kosaku.narioka@wsj.com 

  (END) Dow Jones Newswires

  November 09, 2025 20:29 ET (01:29 GMT)
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