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Earlier in December, Honda Motor said it would temporarily halt operations at its Yorii and Suzuka auto plants in Japan, and a joint-venture factory with Guangzhou Automobile Group in China, for several days because a global semiconductor shortage disrupted its ability to secure key components.
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This disruption underlines how even large, diversified manufacturers like Honda remain exposed to bottlenecks in advanced chip supply chains that can quickly affect production volumes and near-term revenue.
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We’ll now examine how these temporary semiconductor-driven production suspensions could influence Honda’s investment narrative around margins, resilience, and growth.
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To own Honda today, you generally have to believe it can convert its broad auto and motorcycle footprint into steadier margins despite competitive and regulatory pressure. The short term catalyst is whether management can protect profitability while restructuring its EV lineup, and the biggest near term risk remains mounting EV related losses. The announced semiconductor related shutdowns look disruptive, but they appear temporary rather than something that meaningfully changes that core thesis.
Among recent announcements, Honda’s updated fiscal 2026 guidance stands out here, because it sets expectations for profits and margins that may now face some incremental pressure from the January plant suspensions. If the chip shortage lingers or recurs, it could complicate Honda’s efforts to strengthen auto segment profitability at a time when EV write offs, trade friction, and competitive pricing are already weighing on earnings. Yet the key question for investors is whether these supply issues reveal a deeper vulnerability in…
Read the full narrative on Honda Motor (it’s free!)
Honda Motor’s narrative projects ¥22320.2 billion in revenue and ¥855.5 billion in earnings by 2028.
Uncover how Honda Motor’s forecasts yield a ¥1732 fair value, a 11% upside to its current price.
Four members of the Simply Wall St Community have published fair value estimates for Honda, spanning roughly ¥219 to ¥2,211, which shows how far apart individual views can be. When you set those numbers alongside the risks around persistent EV related losses and pressured auto margins, it becomes even more important to weigh several different viewpoints before deciding how Honda might fit into your portfolio.
Explore 4 other fair value estimates on Honda Motor – why the stock might be worth as much as 42% more than the current price!
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include 7267.T.
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