Honda’s (HMC) Global Production Increases 11.8% in May

Honda Motor Co., Ltd.’s HMC production in Japan surged 29.4% to 56,652 units in May. Production outside Japan increased 9.4% to 341,419 units, which was a record high for the month of May. Consequently, worldwide production volume for May 2016 was 398,071 units, up 11.8% from the figure reported in May 2015. The automaker’s global production volume was a record high for the month of May.

Production outside Japan was driven by a 6.5% rise to 169,526 units in North America, a 41.2% improvement to 10,376 units in Europe and a 14.1% increase to 149,040 units in Asia. Honda set a May production record in North America and Asia. These improvements thus offset the 17.2% decline in other regions to 12,477 units. Production in China reached a May high of 85,523 units.

Sales in the Japanese market went up 4.5% year over year to 48,735 units in May. New vehicle registrations rose 5% to 27,948 units, while mini vehicles’ sales grew 3.8% to 20,787 units.

The Honda Fit, which recorded sales of 8,770 units, was the fourth best-selling vehicle in the industry among new vehicle registrations (excluding mini vehicles) in May 2016. VEZEL was the eighth top-selling vehicle, with sales of 5,776 units.

Under the Mini vehicles category, N-BOX was the best-selling vehicle, with sales of 11,486 units. N-WGN was the sixth highest-selling vehicle in the industry, with sales of 6,171 units.

Exports from Japan soared 166.5% year over year to 5,015 units in May. This was the eleventh continuous month of increase in exports.

Honda currently carries a Zacks Rank #5 (Strong Sell). Some better-ranked automobile stocks include Spartan Motors Inc. SPAR, Visteon Corporation VC and Unique Fabricating, Inc. UFAB. All these stocks sport a Zacks Rank #1 (Strong Buy).

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