Honda Vietnam’s profit tops $403mn in 2015
Honda Vietnam’s profit tops $403mn in 2015
Honda Vietnam, the local subsidiary of the multinational conglomerate Honda, managed to rack up even more profit in 2015, despite a saturating motorcycle market.
The motorcycle giant posted US$3 billion in revenue, a strong increase from $2.76 billion in 2014, and $403 million in profit, according to information released this week by the Vietnam Engine & Agricultural Machinery (VEAM).
The VEAM holds a 30 percent stake at Honda Vietnam. The other stakeholders are Honda Motor, headquartered in Japan, and Thailand-based Asian Honda Motor.
Motorcycles continue to be the driving source of income for Honda Vietnam, accounting for 95 percent of the company’s turnover.
Currently, Honda Vietnam controls more than 70 percent of the motorcycle market in the country, with sales growing from 1.91 million units in 2014 to 2.03 million in 2015.
Recognizing signs of saturation in Vietnam’s motorcycle market, the company has maintained its position in the domestic arena while increasing its exports to regional and global markets.
Automobiles constitute the rest of Honda’s income, with sales rising 48 percent against 2014 to reach 8,300 cars in 2015.
Last year, Honda Vietnam, determined to take advantage of an opening in the automobile market, invested $65 million in building its first automobile factory, with an output of 10,000 cars a year.
With three motorcycle factories and one automobile plant, Honda has supplied almost 20 million motorcycles and 44,000 cars in the last 20 years.
Despite its commanding presence in Vietnam, the firm has rarely disclosed information about its corporate performance.
The VEAM only revealed the above financial information when it is preparing to launch an initial public offering (IPO) on August 29.
