Honda Motor Company
Japanese auto giant Honda Motor Company (HMC) has a strong presence in the global auto market. Honda’s ADRs (American depositary receipts) are traded on the NYSE just like the ADRs of its home market peer Toyota Motor (TM).
HMC traded on a positive note in 2017 and managed to make our list of the top five gainers in the auto industry for the year. Let’s take a look at what key factors may have kept HMC positive in 2017.
In November 2017, Honda’s American division reported a YoY (year-over-year) rise of ~8.3% in its US sales. The company sold 133,000 vehicle units in the United States in December compared to 123,000 units in November. December was the third consecutive month in which American Honda reported a YoY rise in its sales. In October 2017, the company’s US sales rose a marginal 0.9% on a YoY basis.
HMC sold ~1.49 million vehicle units in the United States in the first 11 months of 2017, a rise of 1.0% compared to the 1.48 million units it sold during the same period in 2016.
Interestingly, Honda was the only mainstream automaker to report a rise in its US market sales in 2016. Other automakers (XLY), including Toyota, Ford Motor Company (F), and General Motors (GM), reported falls in their US sales.
In its fiscal 2Q18 (ended September 2017), Honda’s global revenue rose 16% YoY. However, costs related to extensive vehicle recalls to fix faulty Takata airbags in the company’s vehicles took a toll on its operating profit during the quarter.
Read on to the next article, where we’ll take a look at how another Japanese automaker’s ADRs traded in 2017.