As supply and chip shortages continue to recover in North America, Honda’s profitability demand has soared by 34% in July-September from 2022. In addition, the Tokyo-based company saw a 17% increase in quarterly revenues to $32 billion and a $1.7 billion profit.
According to Honda Senior Executive Officer Shinji Aoyama, production in North America is still recovering from the bottlenecks brought on by the scarcity of computer chips and other suppliers. Moreover, the COVID-19 pandemic also caused disruptions to corporate activities, which have caused production delays for automakers around the globe. However, these issues are gradually resolving.
Conversely, Aoyama said Honda’s sales negatively impacted China’s booming demand for electric vehicles. Furthermore, Honda has lagged behind the rest of the world in its transition to battery-electric vehicles (BEVs), but the company revealed it will start selling BEVs next year.
Honda sold more than 1.9 million cars globally in the first six months of the fiscal year, up from around 1.8 million vehicles last year, with sales increasing in North America and Japan. However, the company reported its sales fell in Europe and Asia, excluding Japan. The latest sales results are primarily responsible for the most recent profit spike. However, a favorable currency contributed $172 million to the company’s operating profit in the fiscal half of the year, up from the previous year; price reductions also helped.