TOKYO (AP) – Japanese automaker Honda’s profit rose 3.5 per cent in the October-December quarter from a year earlier on the back of solid demand in the United States (US) and Europe and a recovery in its home market, the company said yesterday.
Tokyo-based Honda Motor Corp’s profit in the last quarter was JPY253.3 billion. Quarterly sales jumped 21 per cent to JPY5.39 trillion.
A favourable exchange rate helped amplify Honda’s overseas profits in yen terms and is expected to continue through the rest of the fiscal year, which ends in March.
The dollar has been trading at about JPY148 Japanese, up from about JPY140 last year.
All the automakers have been hurt by shortages of computer chips and other parts, partly due to disruptions in manufacturing because of the coronavirus pandemic. The latest results show Honda has mostly but not yet fully recovered to pre-pandemic levels in some locations.
Honda’s motorcycle sales grew in recent months in Brazil and Europe, according to the manufacturer of the Fit small car, Super Cub motorcycle and Asimo robot.
Honda said it remained committed to “initiatives toward electrification”, pointing to the global electric vehicle (EV) concept models shown at the Consumer Electronics Show in Las Vegas, such as the Saloon and Space Hub.
Japanese automakers including Honda have lagged in the global push toward pure EVs, partly because of their strength in other green models such as hybrids and fuel cells.
Over the first nine months of the fiscal year, Honda sold 3.1 million vehicles, up from 2.7 million vehicles the previous year, with sales especially strong in the US.
A decline in Honda’s vehicle sales in Thailand and Indonesia was offset by rising sales in China.
