Honda Motor has recorded a sizeable increase in operating profit for the financial year ended 31 March 2022. The company recorded JPY 871.2 billion in total profit, recording a year-over-year (YoY) increase of JPY 211.0 billion.
The Japanese automaker stated that it was possible “due primarily to success in reducing costs and controlling incentives, and favorable currency effects”. It further remarked:
This was all despite certain unfavorable factors such as the resurgence of COVID-19, a decrease in automobile unit sales due to the semiconductor supply shortage and an increase in the cost of raw materials.
The increase in profit was due to a decent increase in sales revenue. According to details, Honda recorded a total sales revenue of JPY 14,552.6 billion, which amounts to a 10.5 percent YoY increase.
Honda attributed that rise to the overall increase in vehicle demand in several major markets around the world. It said that the car industry’s overall demand allowed for a greater sales volume on the whole.
Honda aims to maximize its profits for the new fiscal year by ensuring diversity in its product lineup and expanding its geographic footprint.