Honda Motor Co. saw a significant 34% increase in profit during the July-September period, driven by a weak yen that boosted overseas sales, particularly in the United States. The Japanese automaker’s profit rose from 189 billion yen to 254 billion yen, while quarterly sales increased by 17% to 4.9 trillion yen.
The recovery in profitability was attributed to the gradual recovery of production in North America, which had been impacted by a shortage of computer chips and other supplies. However, Honda faced many challenges in motorcycle sales because slowing economic growth in China and Vietnam. Additionally, the company acknowledged that the surging demand for electric vehicles in China had affected their sales, prompting Honda to announce plans to offer battery electric vehicles starting next year.
Honda is projecting a profit of 930 billion yen for the fiscal year ending in March 2024, an increase from their previous forecast. The weak yen has been advantageous for Japanese exporters, including Honda, as it enhances the value of their overseas earnings when converted into yen.
Despite the challenges and shifts in the industry, Honda’s sales have shown growth in Japan