Honda and Mazda expect higher profit for current fiscal year

Article by Anita Panait, on April 29, 2013

Japanese carmakers Honda Motor Co. Ltd. and Mazda Motor Corp. expect to report significantly higher earnings in the current fiscal year ending March 31, 2014, as they try to benefit from the export-friendly depreciation of the yen. The Japanese carmakers are placing more pressure against foreign rivals like South Korean carmaker Hyundai Motor Co., after having posted a 15-percent drop in profits in the first quarter of 2013.

Honda and Mazda both posted significant jumps in profit in the final quarter of the fiscal year ended March 31, 2013. Honda Executive Vice President Tetsuo Iwamura remarked that the carmaker is investing a huge amount especially in new plants. He said that such expansion costs are “eating” into their vehicle volume growth.

Honda, the third biggest-selling Japanese carmaker, is planning to invest JPY700 billion in the current fiscal year, 18 percent higher than the capital spending in the previous financial year. Honda is aiming for annual global car sales of 6 million units by the end of fiscal year ending March 31, 2017.

The carmaker posted record sales of 4.01 million vehicles in the year ended March 31, 2013. Honda is focusing on emerging markets and small cars to propel its growth, and is expanding capacity to better penetrate those markets. It is investing JPY44.6 billion to construct a new plant in Thailand that will commence production in 2015.

The carmaker will add an extra assembly line at a site in Malaysia and will start operations at Yorii in Japan this year, and then commence production in Mexico in 2014. On the other hand, Mazda is now in a position to cash in on the weakening yen, which brings much benefit for margins on Japan-made goods sold overseas.

Mazda builds most of its vehicles in Japan and sells 80 percent of them overseas. Mazda expects exports to the United States, Europe and China to boost its sales by 8 percent this fiscal year. The carmaker will almost double its capital expenditures to JPY130 billion.

If you liked the article, share on:

Topics: honda, mazda, profit

Comments

Recommended

November 17 is considered a very special day for Tesla, as this is the day that they revealed the highly anticipated Tesla Semi. But Elon Musk did not think the...
by - November 17, 2017
More details have emerged about the new sixth generation of the BMW M3 just as the German premium practically announced the end of the current-gen 3 Series with the unveiling...
by - November 17, 2017
All is set for Volkswagen’s plans to enter the electric vehicle game, as prompted by the so-called Dieselgate scandal. In fact, the German carmaker has already made a commitment to...
by - November 17, 2017
As BMW has already revealed, the next generation of the BMW M5 (F90) is a four-wheel drive high-performance sedan with overwhelming power output and torque at its disposal. However, it...
by - November 17, 2017
McLaren unveiled a one-off Gold - on - Black 720S at the 2017 Dubai Motor Show which will be on display throughout the entire stretch of this week’s event. The...
by - November 16, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries