The drop in sales in China affects the profits of the Japanese manufacturer Honda

The benefits of the Japanese car manufacturer They fell almost 20% in the first half of the fiscal year compared to the same period of the previous year, due to the decrease in sales in China.

Honda’s profits between April and September amounted to 494,680 million yen (2,900 million euros), compared to 616,000 million in the same period of the previous year, on sales of 10.8 billion yen (64.7 billion euros), compared to 9.6 trillion yen.

Although Honda sold more motorcycles worldwide in the fiscal first half, driven by strong demand in Asia, its car sales fellespecially in China, as company officials told the press.

Quality issues and warranty costs

Warranty costs and expenses related to quality problems, as well as increased incentives, also Honda’s profits decreasedwhile exchange rate fluctuations added a drag, according to Tokyo-based Honda. The company did not break down quarterly figures.

Honda reduced by 50,000 million yen (303 million euros) your profit forecast for the fiscal year to March, up to 950 billion yen (5.7 billion euros).

This figure is less than the 1.1 trillion yen (6.6 billion euros) that Honda won last fiscal year.Toyota, its domestic rival, also reported a decline in profits early in the day. Honda shares fell 6.5%, while Toyota shares rose 1.7%.