Honda Motor Co., Ltd.

Honda Motor has revealed it is considering building a new automobile assembly plant in the United States to increase hybrid vehicle production capacity, following a restructuring of its electric vehicle business. A company spokesperson confirmed that no final decision has been made, but sources indicate that Honda plans to decide on the investment within the next few years, aiming to begin operations around 2030, with consideration given to producing hybrid SUVs, which are in high demand in the market. Honda views strengthening its hybrid lineup as a key part of its strategy, with plans to launch 15 new models focused on the North American market by fiscal year 2029. The investment decision also depends on progress in negotiations over the United States-Mexico-Canada Agreement (USMCA), as President Donald Trump has announced a 50% tariff increase on automobiles and parts from Canada starting January 1 next year, which could prompt Honda to reconsider its plans for a new plant.

According to the Federation of Thai Industries, released on the 25th, July auto production totaled 117,383 units, up 6.12% year-on-year, turning positive from June's 7.55% decline. Domestic sales increased 20.07% year-on-year, accelerating from June's 17.26% growth. Exports also recovered, up 2.39% year-on-year, compared to June's 7.45% decrease. Thailand is Southeast Asia's largest auto production hub and serves as an export base for major global manufacturers such as Toyota and Honda. The federation forecasts that full-year auto production in 2026 will decline by 3.33%.

Honda's Executive Vice President Noriya Kaihara said at a press conference in Washington that the company's production capacity in North America is nearly at its limit and a new plant is needed. However, he noted that if an agreement on the USMCA (United States-Mexico-Canada Agreement) is not reached in the future, the company may have to change its policy. He stated that the company aims to make a decision within one to two years and have the plant operational by around 2030. He also mentioned that Honda is currently not passing on the costs of tariffs to North American buyers.

Honda Motor dealerships were ranked among the top acquisition opportunities in the U.S. market in a new Franchise Horsepower Index report. The index highlights strong sales growth and comparatively attractive valuations for Honda dealerships relative to peers, with a blue sky multiple nearly 20% below Toyota. Analysts suggest the findings could influence investor sentiment and acquisition activity across the U.S. automotive retail sector. The key marker to watch is the pace of completed Honda dealership buy-sell deals reported for the U.S. market over the rest of 2026.

QuantumScape Chief Technology Officer Timothy Holme sold 75,962 shares of Class A Common Stock on August 18 and 19, according to an SEC Form 4 filing. The transaction was valued at approximately $437,000 based on a weighted average sale price of $5.75 per share. Of the total, 34,086 shares were withheld to cover tax obligations following the release of restricted stock units, while the remaining sales were executed under a Rule 10b5-1 trading plan adopted on June 5, 2025. Holme still directly holds 1,658,075 shares worth $9.75 million at the August 19 closing price of $5.88, and he also holds 1.2 million indirect derivative securities. The sale came in the same quarter that Honda agreed to partner with QuantumScape on its solid-state battery technology, which CEO Siva Sivaram described as the result of one of the most rigorous assessments of the technology to date.

QuantumScape Corporation shares have gained about 11.4% since the company reported a narrower-than-expected second-quarter 2026 loss of 16 cents per share, beating the Zacks Consensus Estimate of a loss of 18 cents. GAAP net loss narrowed 14.4% year over year to $98.24 million, while total operating expenses fell 14.1% to $106.13 million. The company announced a multi-year partnership with Honda and updated its collaboration with Volkswagen Group's PowerCo, and it created three business verticals targeting electric vehicles, AI data centers, and aerospace and defense. QuantumScape lowered its full-year 2026 capital expenditure guidance to $27-$37 million from $40-$60 million and ended June with $859 million in liquidity. Analysts have revised estimates upward since the report, and the stock carries a Zacks Rank #3, or Hold.

The United States is preparing to reduce import tariffs on automobiles from Canada to 15% from the current 25%, as part of a trade agreement under negotiation, with Canada required to lift trade measures imposed in retaliation against the US. Multiple foreign news agencies reported, citing sources, that under the new agreement the tariff rate for Canadian autos would fall to 15%, while details of the deal are still being finalized and there remains a possibility that President Donald Trump could adjust terms late in the negotiations or scrap the agreement, as has happened in past trade talks. The two countries are also discussing ways to expand the list of parts and value eligible for additional tariff exemptions, but no final decision has been made so far. If an agreement is reached on that issue, it would further reduce the tariff burden on automakers. The tariff cut could be a major victory for Canada's auto industry, including major manufacturers such as Toyota, Honda, General Motors, and Ford, which all have production bases in Canada and export vehicles to the US market. Last year, the US announced 25% tariffs on imported cars and trucks built outside the country, while for vehicles produced in Canada and Mexico, the US would levy tariffs only on the value of parts not made in the US, in an effort to push manufacturers to increase domestic production and use more local parts.

U.S. auto dealership acquisitions rose 14.3% in the first half of 2026 compared with the same period in 2025, while the number of transactions increased just 3.2%, according to the Q2 2026 Haig Report from Haig Partners. The report also introduces a new Franchise Horsepower Index measuring new-vehicle economics, finds buyers completing larger transactions and concentrating capital on premium franchises, and identifies Honda as one of today's most attractive acquisition opportunities. Five transactions involving five or more dealerships were completed during the first half of 2026, compared with none in the same period last year. The average blue sky value of a publicly owned dealership was $18.2 million for the twelve months ended Q2 2026, essentially unchanged from the first quarter and more than twice the $8.3 million average recorded in 2019, though down modestly from $19.0 million in full-year 2025. Premium luxury franchises represented 36.1% of acquisitions by Top 20 dealer groups during the last 24 months, up from 22.8% during 2020 and 2021, while domestic franchises fell from 28.7% to 15.1% over the same periods. Haig Partners raised its estimated blue sky multiple ranges for Toyota and Lexus, reduced the top end of its Porsche range, and said Honda's estimated blue sky multiple remains nearly 20% below Toyota's, creating what it believes is an unusually attractive buying opportunity.

Nvidia has signed seven Japanese industrial giants into its new physical AI coalition, locking in a massive, long-lived stream of demand for its chips and software. Companies including Fujitsu, FANUC, Yaskawa Electric, Kawasaki Heavy Industries, Hitachi, NEC, SoftBank, Sony, and Kubota intend to build on Nvidia's Cosmos, Isaac, Metropolis, and Jetson platforms as part of a Cosmos Coalition focused on physical AI. Nvidia is also partnering with Noetra, a Japanese AI consortium backed by Sony, SoftBank, Honda, and dozens of other firms, to build what it calls the world's first national infrastructure for physical AI, centered on a Vera Rubin AI factory with 13,750 Vera CPUs and 27,500 Rubin GPUs delivering about 140 megawatts of compute capacity. Japan's industry ministry expects this to help the country capture 30% of the global AI robotics market by 2040, and Prime Minister Sanae Takaichi's government plans to mobilize more than 370 trillion yen, or 2.3 trillion dollars, in combined public and private investment by 2040 across physical AI, semiconductors, and data centers. Noetra's own roadmap calls for roughly 1 trillion yen, or 6.3 billion dollars, of sovereign AI spending over five years to develop domestic foundation models for robots and industrial AI.

Honda Motor reported a record first-quarter operating profit of JPY 530.7 billion and raised its full-year operating profit guidance by JPY 150 billion to JPY 650 billion. The motorcycle business achieved an all-time quarterly high of JPY 233.9 billion, driven by strong sales in India and Brazil, while the automobile business posted JPY 192.1 billion with a 5.0% operating margin despite a 40% contraction in China's internal combustion engine and hybrid market. The company also revised its adjusted full-year operating profit forecast to JPY 1.17 trillion, excluding EV-related losses, and increased its profit attributable to owners guidance to JPY 400 billion. Management cited a weaker yen and tariff impacts as positive factors, but warned of uncertainty from the Middle East and the Kumamoto earthquake, which suspended production at several plants.

Asia Plus Securities recommends investors wait for the share price to correct before gradually accumulating HONDA19, a Depositary Receipt referencing Honda Motor shares in the Japanese market. The company reported net profit for the first quarter of fiscal year 2025 of 450.9 billion yen, up 129.3 percent from a year earlier and exceeding analyst estimates by 79.8 percent. Total revenue came in at 6.06 trillion yen, an increase of 13.5 percent, supported by motorcycle sales in India and Brazil as well as a recovery in automobile sales in the United States and Japan. Honda raised its full-year net profit forecast by about 54 percent to 260 billion yen. Honda's share price rose about 3 percent after the earnings announcement, already reflecting some of the positive factors. The research team therefore views the current price as above the average fundamental value of analysts from the Bloomberg Consensus and gives a buy recommendation, setting a one-year target price for the HONDA19 DR at 3.42 baht.

The consolidated April–June results for Japan's seven major automakers are now in, with Toyota Motor posting a net profit of 1.477 trillion yen, up 75.6 percent year on year, and Honda roughly 2.3 times higher, as a weaker yen and reduced US tariff burdens lifted earnings. Nissan Motor and Mazda, which were in the red a year earlier, also swung to a profit, and six of the seven companies — all except Subaru — saw earnings improve. A weaker-than-expected yen and lower US tariff rates under the Japan–US agreement provided a tailwind, while sales in North America and Japan remained solid. Honda Chief Financial Officer Masao Kawaguchi noted that the surge in raw material prices triggered by worsening Middle East tensions had also eased from June and did not rise as much as anticipated.

Honda has revised its consolidated net profit forecast for the fiscal year ending March 2027 upward to 400 billion yen, from the previous estimate of 260 billion yen. The company posted a 423.9 billion yen loss in the prior year due to a review of its electric vehicle strategy, but expects a significant improvement this fiscal year. The upgrade is partly driven by a revision of its assumed exchange rate to 155 yen per dollar, from 145 yen, reflecting a weaker yen. The new forecast far exceeds the average analyst estimate of 162.9 billion yen, based on a poll of 16 analysts compiled by IBES. Honda also reported consolidated net profit of 450.9 billion yen for the April-to-June quarter of 2026, roughly 2.29 times the figure from the same period a year earlier.

Honda Motor posted first-quarter GAAP earnings per share of ¥115.84 on revenue of ¥6,061.51 billion, a 13.5 percent increase from the same period last year. The company also updated its fiscal year 2027 outlook in conjunction with the release.

Domestic new car sales in July rose 6.8% year-on-year to 417,163 units, according to data released on the 3rd by the Japan Automobile Dealers Association and the Japan Light Motor Vehicle and Motorcycle Association. The breakdown shows standard passenger cars and commercial vehicles increased 9.7% to 276,679 units, while minivehicles rose 1.6% to 140,484 units. Toyota and Honda posted double-digit gains, and Nissan turned positive for registered vehicles excluding minivehicles for the first time in 20 months, helped by the launch of new models such as the luxury minivan Elgrand and the SUV Kicks. Suzuki and Daihatsu also performed well.

Honda Motor has extended its GAC Honda joint venture in China through 2038, a move framed as important for its local automobile business. The extension comes as Honda Motor's short-term share price return has been strong, with a 28.75% gain over the past 90 days, while its five-year total shareholder return stands at 63.95%. A widely followed valuation narrative points to a fair value of ¥1,573.70, slightly below the last close of ¥1,625.50, suggesting the stock is about 3% overvalued. However, a separate SWS discounted cash flow model estimates a fair value of ¥2,082.91, implying a roughly 22% discount. Persistent investment in mobility services and partnerships with GM, Sony, and others is seen as setting the stage for new high-margin revenue streams, though continued losses in Honda Motor's EV operations and intense price competition in China remain key risks.

Japanese Finance Minister Satsuki Katayama will announce on Monday that Tokyo and Washington jointly intervened in currency markets to halt the yen's slide to 40-year lows, two Japanese government officials told Reuters exclusively. Katayama is expected to stress that both governments are prepared to counter what they view as excessive declines in the Japanese currency, with one official confirming the announcement would refer to "joint action" and saying the operation remained ongoing. The move would mark the first coordinated currency intervention by Japan and the U.S. since 2011, after the yen fell to its weakest level against the dollar since 1986. Japan carried out yen-buying and dollar-selling operations during New York trading hours on Thursday, shortly before the Bank of Japan left monetary policy unchanged on Friday but signalled a strong possibility of raising interest rates soon. Evidence of Washington's involvement emerged when U.S. Treasury Secretary Scott Bessent was photographed with a notepad listing a task to purchase between $5 billion and $10 billion worth of yen, and the U.S. Treasury separately informed several banks on Friday that it could intervene and instructed them to be prepared for further action.

Toyota Motor and Honda are offering free maps showing roads that are passable in the disaster zone following the earthquake that registered a maximum intensity of 7 in Kumamoto Prefecture. Toyota's "Passable Roads Map" is a permanent site covering all of Japan that collects driving records from Toyota vehicles traveling in the affected area within the past 24 hours and updates road conditions such as closures and congestion in real time. Honda's "Traffic Performance Information Map" displays data analyzed from Honda vehicle driving records since the quake struck on the 28th on a map site operated by Zenrin DataCom, and is made publicly available during disasters. Both companies launched these services based on lessons learned from the 2011 Great East Japan Earthquake, and Honda is urging those affected and relief workers to use the information for safe travel.

Nissan and Honda plan to standardise a new software operating system and key electronic hardware for next-generation vehicles, according to local reports. The operating system will be developed based on Nissan's existing OS, and the two automakers also intend to share electronic control units. A formal agreement is expected to be announced next month, following progress in preliminary joint development. The collaboration aims to cut development and production costs as software and electronics account for a growing share of vehicle costs amid the shift to software-defined vehicles.

QuantumScape Corporation reported a net loss of US$98.24 million, or US$0.16 per share, in the second quarter of 2026 while advancing its solid-state battery programs and reaffirming full-year adjusted EBITDA loss guidance alongside reduced capital expenditure plans. The company broadened its scope beyond electric vehicles through new agreements with Honda and Volkswagen's PowerCo and initial shipments into AI data centers, aerospace, and defense applications, including to a major U.S. defense contractor. This expansion signals a wider range of potential commercial uses for its technology and could become an important short-term proof point as the company works to convert evaluations into paid development work and eventual licensing streams.

Rakuten Securities' Toshiru released its high dividend yield stock ranking as of July 17, noting that stock picking is intensifying ahead of the full-fledged earnings season. The ranking screened the top 15 stocks with market capitalizations of at least 100 billion yen and analyst ratings of 3.5 or higher. Exedy topped the list with a dividend yield of 5.97 percent, followed by Ariake Japan at 5.76 percent. While the Nikkei 225 fell 10.0 percent over the same period, 11 of the ranked stocks rose, indicating a shift of funds from AI and semiconductor plays to high-dividend stocks that had been lagging. Five stocks newly entered the ranking, including Ishihara Sangyo and Honda, with Ishihara Sangyo's yield rising relatively due to a share price decline. Going forward, sector rebalancing is expected to progress, with growing interest in high-dividend stocks that report strong earnings.

Hybrid vehicles are on pace to overtake annual electric vehicle sales in California for the first time since 2020, according to newly released data from the California New Car Dealers Association. Hybrids accounted for almost one in every four vehicles registered in the state during the second quarter, comfortably exceeding the 17.8% share recorded by electric vehicles. The shift could benefit automakers with popular hybrid lineups such as Toyota Motor Corp. and Honda Motor Co., whose Camry, RAV4, and CR-V models ranked among California's top-selling vehicles. Electric vehicle registrations declined 8.2% from the previous year, though Tesla's Model Y retained the top-selling vehicle position in the state. California Governor Gavin Newsom also announced a program offering first-time zero-emission vehicle buyers instant rebates of $3,500 for new EVs and $1,750 for used vehicles.

Japan's government-led domestic physical AI development plan, FRONTia, has officially launched, and Hirotoki Tamba, president of the newly established company Noetra tasked with developing the foundation model, told Reuters in an interview that this field represents a last chance for Japan. The Ministry of Economy, Trade and Industry held a kickoff event on the 16th, where Prime Minister Sanae Takaichi emphasized physical AI as Japan's path to victory, unveiling a vision to deploy 10 million AI robots across 18 sectors by 2040. Noetra was founded with SoftBank, NEC, Honda, and Sony Group as its core members, and currently has a total of 44 investors including megabanks. It has received a five-year project commission from government-affiliated institutions and will spend approximately 380 billion yen in the first year. Tamba pointed out the difficulty of physical AI that utilizes field data, while stressing the significance of a transparent and secure domestic foundation model that companies can manage by combining with their own data. He also revealed plans to procure around 27,500 Rubin AI semiconductors from US-based Nvidia.