Japanese motoring giants Honda seem to be going from strength to strength, having recently reported that it had seen a significant increase in its first-quarter profits for 2024. That is to say, the company has boasted no less than a 23% increase in takings this year so far! Its Q1 profits totalled $3.3 billion, or roughly 484.7 billion yen.
So, what is it that’s making Honda so profitable right now? The company’s been around for decades – but its recent success is due to Honda’s increase in vehicle sales worldwide, which grew by 2%.
However, the US hybrid market has had the biggest impact on the company’s growing sales in the quarter reported. The company’s sales in the US have risen by 9% over the first six months of this year alone.
Believe it or not, that’s even setting a record. This is the first time ever that Honda’s quarterly profit has gone over 400 billion yen. To add to the company’s success, it is also its second year in a row that it reached a new record high for its first quarter!
That being said, Honda’s overall sales in China managed to decrease by 23% due to serious competition in electric and hybrid vehicle sales and, unsurprisingly, a serious decline in internal combustion engine vehicle sales.
To try and compete healthily with fast-growing Chinese automakers in a world that is becoming increasingly focused on battery-powered vehicles, Honda has joined forces with Nissan Motor.
Intriguingly, the two rivals will now be working together in researching new technologies and advanced production techniques for the next generation of electric vehicles. It is believed that the two will mostly focus on batteries, vehicle complementation, and e-axles together.
For now, however, with a better-than-expected Q1, Honda is looking hopefully at full fiscal year operating profit predictions at 1.42 trillion yen.
Honda’s recent profit postings show that, at least in the West, interest in its innovations continue to pique motorists’ interests.
What’s more, Honda is clearly aware that an increased interest in hybrid and electric vehicles will only grow. Thanks to fast advancements in their reliability and capabilities, Honda and other car manufacturing companies focused on EVs will surely have a busy future ahead.
While no one particularly expected the US to reach the EV sales it has this past year, one could say that it was bound to happen. Due to the increase in more affordable and reliable EVs on the market, as well as soaring gas prices for traditional cars, perhaps Honda’s success was to be expected in Q1.
While the US has been a keen advocate for EVs so far, other Western countries are slightly slower on the uptake. Countries such as China, Japan, and more on the Eastern side of the world remain the ones leading the EV charge. With that in mind, will Honda actually be able to reach its profit goals for the rest of the year? Or has its hybrid sales peaked for this year? Let’s wait and see.