Honda Motors can bank on weak Yen and strong sales in North America to gain profits

Honda Motors is a renowned figure since its inception; the company is geared to pronounce the 1st Quarter figures on the 31st of July. Honda Motors aims to acquire $580 profits during the 2014 financial period of April to March. The company has studied the currency economic conditions to the brim, and has analyzed its profit estimate based on dollar to yen currency of 1:95. Analyst’s state that the figure can increase further to even 100 yen and also weak values of yen holds good for profits since import profits in Japan yield steep figure outcomes.

Honda holds significant shares in North America at 40%, during the 1st half of 2013, the company’s sales in the continent increased to 6.4%. Some of the powerful models which have contributed roaring profits in North America are CR-V, Civic and Accord. These cars together have generated two third profits to the American market.

Acura appreciated for its luxurious symbol contributed 6.2% of overall growths this year till June period, the growth is now moving at a gradual pace. Honda is now investing whooping amounts of $ 1 billion to revive Acura sales since it’s lost its sales charm recently. The company has introduced MDX and RDX variants of Acura in 2013. Luxury cars are one of the status symbols in America, company officials in America are of the view that the industry can attain fresh growths if the car continues to perform well. Auto firms in America have now turned their focus on luxury models to register impressive profits.

In China, Honda is witnessing roller coaster sale figures, during the month of May the sale increase was 4.8% and has now dipped to 5.6% in the month of June. Another strong factor that has hampered growth dates back to history with the constant disputes between China and Japan on islands which in Japan is called Senkaku and in China can be referred to as Diaoyu. China is a strong market candidate for Honda, China forms a major stake to the company’s profits. In China Honda now aims to launch 12 fresh models, which is a crider, multi-purpose car and mid size model and is keen to manufacture hybrids in China and hopes to roll out 1.3 million vehicles by the year 2015.

Honda has registered admirable profits in the Indian segment, contributed by Amaze. The past three months noted sale profits of 45% which is significantly larger compared to 2012. The continuous strong market volumes in India are a robust factor that would determine the company’s global stature.

For the Indian segment, Honda has strategized its profit methods practically with the launch of Amaze which has contributed chunks of sales to the company. In the American market the company is working on promoting the lavish Acura brand to enhance profits to a whole new level. Other luxurious models such as CR-V, Accord and Civic have resulted in marvelous profits.

In America and India Honda has employed effective strategies, cars are highly reliable commodities in America since the bus system is not so common, and luxurious cars is a boon. In India mileage is a strong factor with profitable industries being located miles from centric city areas.