Honda Sales Surge 28.6% in Q3 FY2024 as U.S. Market Booms
Several automakers, including Honda, have seen a surge in sales in 2023 as supply chain issues eased and demand for new vehicles increased. Honda Motor Co. has reported impressive figures, with the U.S. market playing a significant role in the stock market today.
Honda's third quarter of fiscal year 2024 saw a remarkable 28.6% year-over-year increase in vehicle sales, reaching nearly 1.2 million units. This growth can be attributed to steady demand in the U.S., increased production in Japan, and larger inventories. In the U.S. alone, Honda sold about 433,000 cars last quarter, a 36.2% year-over-year increase, contributing to the overall U.S. auto sales of about 15.5 million units in 2023, an 11.6% jump from 2022.
Stronger consumer incentives, such as Honda's average discounts of $1,646 per vehicle, which rose 65% from their all-time lows, fueled this jump in U.S. car sales. Despite offering lower discounts, Honda managed to overperform the stock market today, growing its market share to nearly 8.7%, up from about 7.1% a year earlier. This success has led Honda to raise its full-year financial guidance for FY 2024, expecting about 960 billion yen ($6.4 billion) in net profits, a 4.2% increase from its earlier estimate.
Under the leadership of CEO Toshihiro Mibe, Honda Motor Co. has demonstrated impressive sales growth and market share expansion in the U.S. and globally. As supply chain issues continue to subside and demand for new vehicles remains strong, Honda is well-positioned to continue this momentum in the coming quarters.
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