Honda, one of Japan’s leading automakers, reported a significant increase in profit for the April-June quarter. The company’s profit rose by 8.7%, reaching 394.7 billion yen ($2.7 billion), up from 363 billion yen in the previous year. This growth was attributed to strong sales of hybrid vehicles in Japan and the U.S., as well as motorcycles in India and Brazil.
Quarterly sales also saw a substantial increase, rising nearly 17% to 5.4 trillion yen ($36.7 billion). A favorable currency exchange rate played a key role in boosting Honda’s earnings, although tough price competition in China posed challenges for the company. Despite this, Honda’s diverse product lineup, which includes popular models like the Accord sedan, Fit subcompact, Super Cub motorcycle, and Asimo robot, helped drive sales and profitability.
The positive impact of a weak yen added nearly 48 billion yen ($326 million) to Honda’s quarterly operating profit. A weak yen is advantageous for Japanese exporters like Honda, as it makes their products more competitive in international markets. The U.S. dollar’s exchange rate above 150 yen during the last quarter further benefited Honda, although recent fluctuations have seen it decline to about 147 yen.
Eiji Fujimura, Honda’s chief financial officer, emphasized the company’s focus on delivering the right products to various markets to mitigate the effects of currency fluctuations. He acknowledged the rapid shift to electric vehicles in China and the challenges it poses for traditional automakers like Honda. Despite uncertainties in the U.S. market, particularly surrounding the upcoming presidential election, Honda remains committed to its fiscal year forecast of 1 trillion yen ($6.8 billion) in profit.
Honda’s motorcycle sales have seen mixed results, with a decline in Thailand due to economic factors but growth in markets like India, Brazil, and North America. The company expects to sell approximately 2.97 million vehicles and 13 million motorcycles globally in the fiscal year ending in March 2025, similar to the previous year’s figures.
In comparison to other automakers, Honda’s performance stands out. While Nissan Motor Co. lowered its annual profit projection and Toyota Motor Corp. reported record profits, Honda’s steady growth and strategic focus on product development and market adaptation have positioned it well for future success. As the automotive industry continues to evolve, Honda remains a key player with a strong global presence and a commitment to innovation and sustainability.