However, sales in Asia market continue to grow
Honda Motor Co Ltd witnessed a slip in its second quarter profit compared to a year ago amid a litigation settlement related to a massive air-bag recall, the Japanese automaker announced today.
According to Japan’s third-biggest automaker, its July-September profit went down by 1.7 per cent from a year before.
In September, Honda had agreed to pay $605m in the US over damages suffered by drivers of its cars following Takata Corp.’s faulty air-bag inflators. Honda was among Takata’s biggest customers.
The company, however, expects its operating profit in the year to March to be £4.9bn, up by 2.8 per cent, as it expects to sell more cars and motorcycles this year, particularly in Asia. The company’s stock have also risen by 4 per cent in the last 12 months.
The automaker has been witnessing booming sales in China where Honda sold 1.03m vehicles in January-September, up 18 per cent from the same period last year. China is also the world’s largest auto market.
Honda is also banking on electric car sales in China, where the government is pushing EVs as a major policy. “In China, we’re seeing strong demand for the Civic, Accord and the CR-V models, as well as SUV models,” Executive Vice President Seiji Kuraishi told media.