Honda expects a good year with great start in 2014

Japanese carmaker Honda seems to have taken advantage of weak yen to double profits in all markets across the world therefore it has managed to double profits within first three quarters till March 2014 when compared to figures of last year.  Honda’s profit was at 1.7 billion between Jan – March of 2014 which is double the profits of last year which was at 740 million. The carmaker had introduced new models last year like the Amaze and remodeled Honda City in Asian markets and Honda Civic in European and American markets. As per latest figures released by the carmakers’ auditors at Tokyo its sales have increased by 13 percent amounting to 30 billion. During the fiscal year of 2014 Honda saw a growth in profits totaling 170.5 billion which was above 75 billion earned by Honda last year.

Honda Motor Company has sold around 1.2 million vehicles around the world during first quarter of 2014 as Japanese citizens were keen on buying their cars before expected sales tax increase in April 2014. The Japanese carmaker is also keenly pushing its products Odyssey minivan along with Accord sedan across local and international markets to achieve target of selling 4.83 million cars in global markets before end of fiscal year in March 2015. Its impressive ability to sell existing range of cars and bring in new products which are instant hits has helped it sell a total of 4.3 million cars in between 2013-14. Mazda Motor Corp which is another Japanese carmaker has also reported an increase of seven fold in its profits amounting to 58.3 billion yen during Jan – March 2014 due to this favorable exchange rate.

Honda is planning on launching an impressive range of vehicles within next few years comprising a varied range of designs ranging from crossover and compact SUV’s to compact and full size sedans and hatchbacks to meet varied needs of customers around the world. Honda has been making hybrid plug in cars too but haven’t been very successful in selling them due to competitive priced products from other manufacturers. With the new range of cars Honda is forecasting growth of 21 percent in forthcoming years which will help growth by $ 5.8 billion. The car maker has predicted an increase of $ 5.6 billion in forthcoming years, which is less ambitions as despite increase in takes the yen will be a little weak.

All the major Japanese automakers like Toyota and Mazda are also expecting a serious growth in earning due to weak yen in forthcoming years but market watchers state that this growth may fluctuate as and when exchange rates fall and rise. Therefore Japanese automakers have made growth predictions based on exchange rate of a dollar to 100 yen for forthcoming years and are trying to push in as many attractive products as possible until these good times last. In recent years as Toyota has continued to be world’s top automaker and Nissan Motors tied up with Renault of France to increase it reach into international markets which has helped grow its profits in recent years.