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Abstract The discovery of topological insulators and semimetals triggered enormous interest in exploring emergent electromagnetic responses in solids. Particular attention has been focused on ternary half-Heusler compounds, whose electronic structure bears analogy to the topological zinc-blende compounds while also including magnetic rare-earth ions coupled to conduction electrons. However, most of the research in this system has been in band-inverted zero-gap semiconductors such as GdPtBi, which still does not fully exhaust the large potential of this material class. Here, we report a less-studied member of half-Heusler compounds, HoAuSn, which we show is a trivial semimetal or narrow-gap semiconductor at zero magnetic field but undergoes a field-induced transition to a Weyl semimetal, with a negative magnetoresistance exceeding four orders of magnitude at low temperatures. The combined study of Shubnikov-de Haas oscillations and first-principles calculation suggests that the exchange field from Ho 4f moments reconstructs the band structure to induce Weyl points which play a key role in the strong suppression of large-angle carrier scattering. Our findings demonstrate the unique mechanism of colossal negative magnetoresistance and provide pathways towards realizing topological electronic states in a large class of magnetic half-Heusler compounds.