Honda Unveils Plan to Rebuild Automobile Business, Targets Record Operating Profit by 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.
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