Japan's Honda boosts profit despite chips crunch, COVID-19
CTV
Honda reported a 27 per cent jump in its October-December profit, despite headwinds like shortages of computer chips and rising costs of raw materials.
Honda reported a 27% jump in its October-December profit, despite headwinds like shortages of computer chips and rising costs of raw materials.
Tokyo-based Honda Motor Co.'s profit in the last quarter totaled 244.6 billion yen (US$1.9 billion), up from 192.9 billion yen the year before.
Quarterly sales rose 20% to 4.4 trillion yen ($33.5 billion), as Honda sold more motorcycles around the world, compared to a year ago, while vehicle sales were little changed.
By region, Honda sold more vehicles in Japan and the U.S., but sales declined in China and other parts of Asia. Motorcycle sales grew across all major markets, including Japan, North America and the rest of Asia, especially Indonesia, India and Vietnam.
Like other automakers, including Japanese rivals such as Toyota Motor Corp., Honda is stepping up in the push to offer more electric vehicles, as concerns grow about the environment and climate change.
The maker of the Accord sedan, Asimo robot and Gold Wing motorcycles has promised to launch 30 EV models globally by 2030.
Honda is promising a range of models, from tiny vans to muscular sportscars. It's especially aggressive in model offerings in China, where Honda is a strong brand.
