Honda Faces Risk of Dropping Out of Japan’s Top Three Automakers

Japanese automaker Honda Motor has downgraded its forecast for the second half of the fiscal year ending March 2026, putting it at risk of falling from second to fourth place among Japan’s largest automakers by global sales.

Honda’s vehicle sales between October 2025 and March 2026 are expected to drop roughly 14% compared with last year, reaching 1.66 million units. The main cause is production cuts at North American plants due to a semiconductor shortage.

Meanwhile, Suzuki continues to see steady growth in India, capturing around 40% of the local market and steadily increasing its volumes. This expansion could allow Suzuki to surpass Honda and secure a spot in the top three Japanese automakers.

The semiconductor shortage has also affected Nissan Motor, which currently ranks third among Japan’s auto giants. Production constraints have reduced vehicle output and negatively impacted annual operating profit forecasts. Toyota, however, continues to hold its lead in the domestic Japanese market despite the challenges faced by its competitors.

In October, Chinese authorities blocked Dutch company Nexperia from exporting chips from its factories in China. The move was a response to the nationalization of Nexperia’s assets in the Netherlands. China has now taken control of Nexperia and resumed chip shipments.