Honda Motor Co. is poised to announce a record-breaking group operating profit exceeding 450 billion yen ($3.08 billion) for the quarter ending June, marking a significant 20% increase from the previous year. This milestone represents the first time Honda’s quarterly operating profit has surpassed 400 billion yen, underlining the automaker’s successful performance in the U.S. market.
The Japanese car manufacturer reported a 3% increase in U.S. auto sales, reaching approximately 350,000 units for the April-June period. This growth has continued for 16 consecutive months, emphasizing the U.S. market’s critical role for Honda amid stiff competition in China.
Hybrids have been a key driver of Honda’s success, accounting for half of its U.S. sales. These vehicles, particularly popular in the SUV and sedan categories, have benefited from a rise in consumer demand, enabling price hikes that have bolstered profits. Additionally, the strength of Honda’s motorcycle segment and a favorable exchange rate have further supported earnings. During the quarter, the yen averaged around 156 yen per dollar, a depreciation that significantly boosted Honda’s profits.
In contrast, Honda’s performance in China has been less favorable, with a 24% drop in sales from January to July. While Honda thrives in North America, Nissan Motor Co. is struggling with declining profits due to its challenges in the U.S. market.
