Honda Raises Profit Forecast and Pivots Toward Hybrids

Honda Motor Co. raised its operating profit outlook for the fiscal year ending March 2027 to 650 billion yen, a 30% increase from its previous 500 billion yen forecast. The revision follows record quarterly profits for the period ending in June, fueled by high demand for hybrid vehicles in North America, a weak yen, and strong motorcycle sales in Brazil and India. Net sales rose 14% to 6.1 trillion yen.

Despite these gains, the company faces challenges in China, where the market for internal combustion and hybrid cars is contracting more rapidly than anticipated. To stabilize its automobile business, Honda intends to introduce 15 new hybrid models by March 2030. In a shift of strategic priorities, the company has indefinitely paused plans to establish an electric vehicle battery supply chain in Canada.

To support next-generation vehicle development, Honda is collaborating with Nissan Motor Co. to create new software. Chief Executive Officer Toshihiro Mibe has been tasked with stabilizing the company's car business within the next three years.