Japanese automaker Honda Motor Corp announced a 3.5% increase in profit for the October-December quarter compared to the previous year, attributing the growth to robust demand in the United States and Europe, along with a recovery in its home market.
Honda’s profit in the last quarter reached 253.3 billion yen, equivalent to $1.7 billion. This surge in profitability was accompanied by a remarkable 21% jump in quarterly sales, reaching 5.39 trillion yen ($36 billion).
A favorable exchange rate further bolstered Honda’s overseas profits in yen terms, a trend expected to persist through the remainder of the fiscal year ending in March. The US dollar has been trading at around 148 Japanese yen, up from approximately 140 yen the previous year.
Despite challenges posed by shortages of computer chips and other parts, stemming partly from disruptions in manufacturing due to the coronavirus pandemic, Honda has shown resilience and made significant strides toward recovery, although not yet fully returning to pre-pandemic levels in some regions.
Honda’s motorcycle sales experienced growth in recent months, particularly in Brazil and Europe, showcasing the company’s diverse product lineup ranging from the iconic Fit small car to the Super Cub motorcycle and the cutting-edge Asimo robot.
Remaining steadfast in its commitment to electrification initiatives, Honda unveiled global electric vehicle concept models at the Consumer Electronics Show in Las Vegas, including the Saloon and Space Hub. While Japanese automakers, including Honda, have historically lagged behind in the global push toward pure electric vehicles, their strength in other green models such as hybrids and fuel cells remains noteworthy.
Over the first nine months of the fiscal year, Honda witnessed a significant uptick in vehicle sales, selling 3.1 million vehicles compared to 2.7 million vehicles the previous year, with particularly robust sales in the US market. Although vehicle sales experienced a decline in Thailand and Indonesia, this was offset by rising sales in China.
Looking ahead, Honda projects a robust profit of 960 billion yen ($6.5 billion) for the full fiscal year through March, surpassing its earlier forecast of 930 billion yen ($6.3 billion) and marking a considerable increase from the 651 billion yen earned in the previous fiscal year. This optimistic outlook underscores Honda’s resilience and adaptability in navigating challenges while capitalizing on opportunities in key markets worldwide.
