People are reflected on a Honda Motor car outside the company's headquarters in Tokyo, Japan, on Feb 2, 2017. (File photo: Reuters)
KYODO — Honda Motor Co expects to return to profitability this fiscal year, but the turnaround does not guarantee the embattled carmaker will get back on a growth path anytime soon.
Honda has shifted from a strategy centred on electric vehicles (EVs) to prioritise the Japanese, Indian and North American markets and will introduce 15 new hybrid models over the coming years.
Still, analysts say Japan's No. 2 carmaker by volume should embark on more fundamental reforms to regain its competitive edge for future growth, including diversifying its supplier base, forming a capital alliance and strengthening product features.
The automaker said in 2024 that it would invest about ¥10 trillion (US$63 billion) through fiscal 2030 in its electrification push, though it cut the plan to ¥7 trillion the following year.
