In a recent financial update, Honda has raised its annual profit outlook, attributing the positive adjustment to a robust dollar and increasing demand in North America. This announcement came alongside Nissan’s impressive performance report, which highlighted a nearly threefold increase in its net profit compared to the previous year.
Honda has now set its annual net profit target at ¥960 billion ($6.45 billion), marking a ¥30 billion increase from its earlier forecast. The company credits this upward revision to enhanced profitability strategies and favorable currency exchange impacts. Honda’s financial results for the nine months leading up to December have shown a significant uptick, with net profits soaring nearly 50% to ¥869.6 billion from sales that climbed 19.8% to reach ¥15 trillion.
A remarkable 43% surge in U.S. sales and an 8.6% increase in Japan have been pivotal in this period. Honda is optimistic about its performance in the Chinese market, expecting it to offset declines in other regions such as Thailand and Indonesia.
Nissan has not been left behind in this financial upturn, reporting a substantial year-on-year increase in net profit to ¥325 billion for the first three quarters. The company’s sales during the same period rose by 22.3% to ¥9.17 trillion, primarily driven by strong demand in the U.S. market. Nissan’s CFO, Stephen Ma, attributed this success to the strategic execution of the Nissan Next Plan, despite acknowledging the ongoing uncertainties such as the impact of a major earthquake in Japan and geopolitical tensions in the Middle East.
While maintaining its sales forecast at ¥13 trillion with an expected net profit of ¥390 billion, Nissan has adjusted its annual vehicle sales volume projection down from 3.7 million to 3.55 million vehicles due to logistic challenges and competitive pressures. Ma also highlighted Nissan’s efforts to enhance vehicle transportation capabilities from Mexico to the U.S.
Discussion on Nissan’s investment in Renault’s electric vehicle division, Ampere, remains cautious, with Ma indicating ongoing dialogues with Renault following the latter’s decision to pause its IPO plans. The collaboration’s future, while still under negotiation, hints at further strategic alliances in the electric vehicle sector.