Honda (HMC) Expects 2024 US Sales to Rise on High Hybrid Demand
Honda Motor Co., Ltd. HMC expects high demand for its hybrid and gas-powered models to boost its sales in the United States in 2024. The Japan-based automaker expects to sell 1.4 million vehicles this year.
Per Mamadou Diallo, sales executive at Honda’s US subsidiary, Honda aims to increase its sales by 10% in 2024. The automaker plans to sell around 1.3 million units of the Honda brand and around 150,000 units of upscale Acura cars and sports utility vehicles (“SUVs”).
In 2023, Honda’s sales rose by 33% to 1.3 million units. One-fourth of the total sales came from hybrid models, including gas-electric versions of the CR-V compact SUV and Accord mid-size sedan.
Last year, the Honda CR-V hybrid emerged as the best-selling hybrid model in the United States with sales of 197,317 units and the Accord hybrid sedan was crowned the most popular hybrid-electric car with sales of 96,323 units.
Honda sales in 2023 showed a significant recovery from 2022, when the automaker sold fewer than a million units, its lowest in 25 years. Per Honda’s spokesperson, the supply and logistic challenges in 2022 resulted in a sales dip.
Per Diallo, the automaker plans to keep up its acquired sales momentum in 2024 while overcoming the challenges of vehicle affordability and higher interest rates. The balance between production level and pent-up demand has led to normalized growth this year.
The Honda Prologue and Acura ZDX are on track for their initial deliveries early this year. Both vehicles are being manufactured at an unidentified General Motors GM plant. GM has encountered several electric vehicle-related production and software issues that have resulted in delayed deliveries to customers.
Per Diallo, the upcoming models will help Honda meet its sales target.
Zacks Rank & Other Key Picks
HMC currently carries a Zacks Rank #2 (Buy).
Some other top-ranked players in the auto space are Volvo VLVLY and Toyota Motor Corporation TM each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for VLVLY’s 2023 sales and earnings suggests year-over-year growth of 4.2% and 73.1%, respectively. The EPS estimates for 2023 and 2024 have improved by 4 cents and 3 cents, respectively, in the past 30 days.
The Zacks Consensus Estimate for TM’s 2024 sales and earnings implies year-over-year growth of 11% and 47%, respectively. The EPS estimates for 2024 and 2025 have moved up by 21 cents and 23 cents, respectively, in the past seven days.
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