Honda Motor has announced its electric vehicle (EV) sales figures for the April-June 2024 quarter. The company sold 204,000 hybrid electric vehicles (HEVs), 4,000 plug-in hybrid electric vehicles (PHEVs), and 6,000 battery electric vehicles (BEVs). Despite these figures, Honda did not disclose the revenue or profit from its EV business.
The automaker reported strong sales of hybrid models in Japan and the United States, contributing to increased overall unit sales in these regions. The company incurred a capital expenditure (Capex) of 91.5 billion yen, up from 61.9 billion yen, while research and development expenditures rose to 233.9 billion yen from 194.2 billion yen.
Honda generated significant revenue across its business segments: 937.6 billion yen from the Motorcycle Business, 3,504.5 billion yen from the Automobile Business, and 939.3 billion yen from the Financial Services Business.
Japan’s second-largest carmaker reported a 23 percent increase in first-quarter profit, benefiting from a weaker yen, higher pricing, and growing hybrid vehicle sales in the U.S. and Japan. The company posted a quarterly operating profit of 484.7 billion yen ($3.3 billion) for the April-June period.
Despite maintaining its full-year operating profit forecast of 1.42 trillion yen, Honda slashed its sales outlook for China by 21 percent, forecasting 840,000 vehicle sales for the period.
The company’s global vehicle sales grew by 2 percent to 1.9 million in the first six months of the year, driven largely by a 9 percent increase in U.S. sales, its top market. However, Honda faced challenges in China, with sales dropping 23 percent to 416,000 vehicles due to intense price competition and a rapid decline in the internal combustion engine vehicle market.
In response to these headwinds, Honda announced plans to close a factory and halt production at another plant in China. The company aims to start production at two new EV plants in China, operated through joint ventures with Chinese automakers, later this year. Additionally, Honda is looking to collaborate with Nissan Motor to accelerate its transition to battery-powered electric vehicles.