Honda Motor Co.: What Is The Positioning of Hybrid in Electrification Strategy?

Honda Motor’s earnings of FY ’24 reveals that the mobility company has been posting a historic high operating profit of JPY 1,381.9 billion, with an operating profit margin of 6.8%. Underpinning this growth has been the company’s core strategy of focusing on environmental sustainability and safety, which is resonating well with the consumers. For FY ’25, Honda has set a higher target for operating profit at JPY 1.42 billion, aiming to achieve an operating profit margin of 7%, a year ahead of their original plan. This clearly underlines the company’s confidence in continuing the current growth momentum. The cash flows from operating activities, excluding R&D expenses, were around JPY 3 trillion – up from JPY 1 trillion YoY – laying the foundation to support future investment for growth.