Honda has reported a record profit for the financial year that ended in March, with earnings jumping by 57 per cent compared to the previous year.
Japanese manufacturer Honda has reported a record profit for the financial year that ended in March, with earnings jumping world-wide by 57 per cent compared to the previous year.
Honda made R52,1 billion for the year. Its success has been attributed to a weaker yen and healthy sales. Analysts estimate that net profit for the current year will rise by 27 per cent.
Honda also predicted a 7,3 per cent rise in global vehicle sales to 2,86 million units, including an 8,9 per cent rise for North America, a 4,8 per cent rise for Japan and an 8,0 per cent rise for Europe.
“We are going to be launching new models derived from our Fit sub-compact, and we have revised our 2002 forecast for the US market upwards to 16 million units from 15,5 million, so there will be extra sales there,” Honda Executive Vice-President Koichi Amemiya said. The Fit is known as the Jazz in Europe.
Apart from a dip in December last year, Honda’s domestic sales have risen in year-on-year terms each month since November 1999.
Honda currently makes 20 000 Fit models a year at its Suzuka plant in western Japan. The Fit topped the marque’s sales in Japan in November 2001, selling 19 772 units.
The Fit, which was named Japan’s 2001 car of the year, is being seriously considered for the South African market, but, as in Europe, it will be called the Jazz.
“We think it would appeal to the SA market. It’s small on the outside, but very roomy inside. As with the Civic, Honda has made the most of the interior space,” Honda SA marketing officer John Lawrence told CARtoday.com recently.
There is also strong demand for the CR-V sport-utility in Japan and the United States. Honda increased production of the CR-V from 14 000 to 18 000 a month in January.
Automobile sales in Japan accounted for 27,9 per cent of global sales compared to 59,5 per cent in the US. Europe generated a 5,7 per cent share, and the rest of the world 6,9 per cent.