Honda Unveils Plan to Rebuild Automobile Business, Targets Record Operating Profit by 2029
Honda will focus on hybrids, reduce EV investment, and aim for record operating profit of over 1.4 trillion yen by fiscal 2029.
>1.4 trillion yen
15 by fiscal 2030
>30% vs 2023
What Happened
Honda outlined a three-pillar plan to rebuild its automobile business: strategic reallocation of resources, strengthening manufacturing, and utilizing external resources. The company will prioritize hybrid models, launching 15 next-generation hybrids globally by fiscal 2030, and target a 30% reduction in hybrid system costs. It aims for an all-time high operating profit of over 1.4 trillion yen by fiscal 2029.
>1.4 trillion yenyen
All-time high for the fiscal year ending March 31, 2029
Begin launching next-generation hybrid models with all-new hybrid system and platform
Market launch of next-generation ADAS; start of full model change development with halved development timeframe
Achieve operating profit over 1.4 trillion yen; resolve EV-related losses
Launch 15 next-generation hybrid models globally
- Strategic reallocation of corporate resources toward hybrids and priority regions
- Thorough strengthening of manufacturing structure with cost reduction and efficiency
- Strategic utilization of external resources for batteries and local competitiveness
Why this matters
Honda is shifting to a hybrid-focused strategy to cut costs and improve profitability amid changing market conditions, which could influence vehicle offerings and pricing in key markets.
Terms in This Story
- Hybrid vehicle
- A vehicle that combines a gasoline engine with an electric motor to improve fuel efficiency.
- ADAS
- Advanced Driver-Assistance Systems, technologies that help drivers with safety and navigation tasks.
- ROIC
- Return on Invested Capital, a profitability measure indicating how well a company generates returns from its investments.
- DOE
- Dividend on Equity, a ratio of dividends paid to shareholders' equity, used to gauge dividend policy.
Summarised from the linked release; details can be imperfect — always verify against the original source.