Honda's Q1 FY23 profit slumps 33%, blame it on chip crisis

Honda's profit totalled $1.1 billion in the April-June quarter of 2022 down from $1.7 billion a year earlier.
By : HT Auto Desk
| Updated on: 10 Aug 2022, 13:57 PM
Honda is among the worst impacted carmakers due to the chip crisis.
Honda is among the worst impacted carmakers due to the chip crisis.
Honda is among the worst impacted carmakers due to the chip crisis.
Honda is among the worst impacted carmakers due to the chip crisis.

Honda Motor Company on Wednesday reported a 33 per cent slump in its first fiscal quarter profit as compared to the same period last year. The automaker has blamed the profit slump on the semiconductor crisis and rising costs of raw materials. Apart from that, the pandemic-related lockdown in China too impacted the automaker's profit.

(Also Read: Exclusive: Maruti Grand Vitara gets 33k bookings, nearly half for strong hybrid)

Honda reported that its profit totalled $1.1 billion in the April-June quarter, down from $1.7 billion a year earlier. Quarterly sales slipped seven per cent to $28 billion. Honda also kept its profit forecast for the full fiscal year through March 2023 unchanged at $5.3 billion.

Similar Cars

Find More Cars
Honda Amaze (HT Auto photo)
Honda Amaze
1199 cc | Petrol | Manual | 18.6 kmpl
₹6.32 - 11.15 Lakhs**Ex-showroom price
Honda Civic (HT Auto photo)
Honda Civic
1799 cc | Petrol | Automatic (CVT) | 16.5 kmpl
₹17.94 - 22.5 Lakhs**Ex-showroom price
Maruti Suzuki Baleno Facelift (HT Auto photo)
Maruti Suzuki Baleno Facelift
1197 cc | Petrol | Manual
₹6.5 - 10 Lakhs**Ex-showroom price
Tata Tiago Nrg (HT Auto photo)
Tata Tiago Nrg
1199 cc | Petrol | Manual | 20.09 kmpl
₹6.57 - 7.09 Lakhs**Ex-showroom price
Kia Sonet (HT Auto photo)
Kia Sonet
1197 cc | Petrol | Manual | 18.4 kmpl
₹6.79 - 13.55 Lakhs**Ex-showroom price
Hyundai I20 (HT Auto photo)
Hyundai I20
1197 cc | Petrol | Manual | 20.35 kmpl
₹6.8 - 11.43 Lakhs**Ex-showroom price

The ongoing semiconductor crisis has hurt all the global automakers, including Honda, despite strong demand. This has prompted auto manufacturers to scramble for secure alternative suppliers. Honda reportedly sold around 815,000 vehicles last quarter, down from 998,000 vehicles in the same period last year. Its sales dropped in almost all regions around the world, including Japan, US and Europe.

FOLLOW US:Stay Updated with latest content - Subscribe us on
FOLLOW US:Stay Updated with latest content - Subscribe us on

Honda Chief Financial Officer Kohei Takeuchi said that the customers who are still waiting for their booked vehicles to be delivered to understand that the company is doing its utmost to make the deliveries even a day sooner. He further added that the semiconductor shortage has curtailed motorcycle production as well as car production while making future prospects uncertain as well.

Honda is not the only automaker that has witnessed its sales slump significantly due to the Covid-related problems including lockdown, microchip crisis, rising raw material prices etc. Several other automakers too have been facing these problems. This has prompted several automakers including Honda to shut down their respective manufacturing plants temporarily.

First Published Date: 10 Aug 2022, 13:56 PM IST
Recommended For You
View All
NEXT ARTICLE BEGINS

Please provide your details to get Personalized Offers on

Choose city
+91 | Choose city
Choose city
Choose city
By clicking VIEW OFFERS you Agree to our Terms and Privacy Policy

Dear Name

Please verify your mobile number.

+91 | Choose city