Nikkei Asia reported that Japan's second-largest automaker, Honda, will announce its first-quarter financial report for the 2024 fiscal year (ending in June) this week. According to Japanese media estimates, Honda has earned over 450 billion Yen (approximately 3.08 billion USD) in profit in the first half of 2024.
This result marks a new quarterly record, and experts predict that Honda's revenue is largely due to the strong growth of hybrid car sales in the US market. With a profit of 450 billion Yen, Honda's profit has increased by approximately 20% compared to 2023.
It can be said that this is the first time Honda's quarterly operating profit has exceeded 400 billion Yen (approximately 2.75 billion USD), as well as the second consecutive year that the company has achieved its highest-ever quarterly profit.
According to Nikkei, Honda's US car sales are expected to increase by 3%, or approximately 350,000 units, from April to June. The company's sales have increased for 16 consecutive months through June compared to the same period last year.
Notably, this result highlights the importance of the US market for Japan's largest automaker, as well as many other manufacturers in the country. Recently, Japanese automakers have been struggling in the Chinese market due to intense competition from domestic low-cost car manufacturers.
In the context of decreasing demand for electric cars, hybrid cars will become a driving force for Honda's sales when this line accounts for half of the company's sales in the US. In addition, the company's motorcycle segment has also contributed to the company's record-breaking profit.
On the other hand, Honda is also benefiting from the depreciation of the Japanese yen. According to Nikkei, in the first quarter, the Japanese currency fluctuated around 156 Yen per USD, down 19 Yen from the same period in 2023. Each time the yen depreciates by 1 unit against the USD, Honda's annual operating profit will increase by 10 billion Yen (approximately 69 million USD).
