Honda finance treasury yield stabilization in Japan

Treasury yield stabilization in Japan is contributing to steady discount rates on Honda Finance loan products, indirectly supporting its competitive edge. This may translate into sustained growth in financing volumes over the next two quarters. While the tax credit only applied to a relative handful of models that met certain criteria for price and domestic content, it prompted automakers to offer generous incentives of their own to remain competitive. These included cut-rate lease deals fueled by a loophole in the tax credit legislation that enabled automakers to pass along all or part of the $7,500 credit to those leasing an EV that didn’t otherwise qualify for the credit. TOKYO, Japan, August 20, 2025 – Honda Motor Co., Ltd. (Honda) today announced the recent establishment of a new company in India, Honda Finance India Private Ltd., (“Honda Finance India”) that will offer customers retail sales financing services including loans and lease sales options for Honda products in India. Honda Finance’s credit default swap (CDS) spreads tightened to 48 bps, down from 53 bps last quarter, reflecting improved credit perception. Historically, such tightening has preceded moderate stock gains within three months.