Honda's Lower Discounts Strategy Boosts U.S. Market Share and Sales
Honda has reported a significant increase in market share and sales, despite offering lower discounts than the industry average. The Japanese automaker's strategy appears to be paying off, with strong results in the U.S. stock market today.
Honda's market share in the U.S. grew to nearly 8.7% in the quarter, up from about 7.1% a year earlier. This growth comes despite offering lower discounts than the industry average. The company attributed this success to steady demand in the U.S., increased production in Japan, and larger inventories.
In the U.S., Honda sold nearly 1.2 million vehicles in the third quarter of fiscal year 2024, a 28.6% year-over-year increase. This impressive sales figure was driven by stronger consumer incentives, including Honda discounts averaging $1,646 per vehicle, a 65% increase from the previous year. The automaker also set a sales record in 2023, as supply chain issues subsided and inventories recovered.
Honda's success in the U.S. stock market today has led the company to raise its full-year financial guidance for FY 2024, expecting about 960 billion yen ($6.4 billion) in net profits, a 4.2% increase from its earlier estimate. U.S. auto sales reached about 15.5 million units in 2023, an 11.6% jump from 2022, with Honda selling about 433,000 cars in the U.S. last quarter, up 36.2% year over year. Despite the competitive stock market today, Honda's strategy of offering lower discounts and focusing on other factors has proven effective.
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