“A recovery in domestic sales since the April tax rise has been slow...(and) it is also unclear how demand in China — a core market for Japanese automakers — will fare” in the coming months, he added.
Japan raised its sales tax in April for the first time in 17 years in a bid to help pay down an eye-watering national debt.
But the levy hike hit growth in the world’s number three economy as consumer spending dropped off once prices went up on April 1.
That hurt demand for big-ticket items, including vehicles.
Honda is the first of Japan’s “Big Three” automakers to post its latest earnings, with rival Toyota and Nissan both reporting next week. — AFP
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