Honda Cars posts a 521% jump in profits
The automobile brand had recorded Rs 230 crore profit after tax in FY’22
Honda Cars India posted a 521% jump in its profit in operations in FY’23 and recorded Rs 1430 crore profit after tax. The automobile brand had recorded Rs 230 crore profit after tax in FY’22, having remained in losses since 2020.
The financial report stated that the passenger vehicle segment posted the highest-ever domestic sales of 3.9 million units, surpassing the previous peak in 2018-19, and an annual growth of 27%. Buying ahead of implementation of new RDE emission norms, and strong demand during the festival season also drove sales of passenger vehicles.
The Directors’ report stated that 2022-23 has been a year of consolidation, post-Covid. Although the year started again with supply chain disruption triggered due to geo-political factors, a mix of improved chip supplies, higher incomes and pent-up demand, especially for SUVs supported sales of vehicle manufacturers.
Honda Cars India posted a 14% increase in revenues for FY '23 at Rs 14,439.71 crore, which was fuelled by increased exports and improved volumes in the domestic market. The highest-ever export volume of 22,764 units during the year 2022-23, registered a growth of approximately 17% since last year.
The company had registered annual domestic sales of 91,418 units during FY '23 recording a growth of 7% over 85,609 units sold in the last financial year.
The Amaze’s sales grew by 33% since last financial year and are one of the most preferred family sedans in India, the report further stated. The Honda City continued its legacy of success by being the largest-selling midsize sedan in the country last year.
To strengthen brand activities and reiterate the value of Honda, a new brand slogan- ‘A Honda Goes Beyond’ was introduced. In FY’24, HCIL is looking to make a strong entry into the booming SUV segment in India with the launch of its new global model Honda Elevate.
