Published on 17 Apr 2024 on Zacks via Yahoo Finance
Honda (HMC) to Launch 6 Next-Generation EVs in China by 2027
Honda Motor Co., Ltd. HMC plans to introduce six next-generation electric vehicle (EV) models under its new brand, Ye, in China, by 2027. Ye is Honda’s third brand in China after e:N and Lingxi. This brand will flaunt a new H mark to represent its next-generation EVs.The new models will be based on a newly developed EV platform customized for the Chinese market. Ye P7 and Ye S7, the first two crossover models, will hit the market by the end of 2024. The next-gen EV models will be offered in single and dual-motor 4WD versions.The RWD variant is set to offer sporty and crisp handling, while the 4WD model provides power and responsive handling. The LED lights that are present on new EVs’ instrument and door panels change based on the AI.New Ye GT Concept has a sleek low-riding silhouette and its interior resembles the inside of a race car. The Ye GT, which is set to hit the market by the end of 2025, will feature a far-focus display.In a bid to derive 100% of its automobile sales in China from EVs by 2035, it also plans to introduce a total of 10 Honda-brand EV models in the country by 2027.The automaker is trying to ramp up its EV sales to catch up with its rivals like General Motors and Volkswagen. In light of rising competition from its China-based counterparts, Honda is contemplating a strategic partnership with Nissan to manufacture essential components for EVs and AI in software platforms. In January, Honda revealed its Honda 0 Series EVs and two concept models at the CES trade show.HMC plans to introduce 30 EVs globally, targeting a sales volume of two million units by 2030. This move is part of Honda's broader strategy to achieve 100% zero-emission automobile sales by 2040, a mix of battery and fuel cell electric models. It plans to introduce 10 models in the next five years in its e:N series.
Zacks Rank & Key Picks
HMC currently carries a Zacks Rank #3 (Hold).Some better-ranked players in the auto space are Geely Automobile Holdings Limited GELYY, Toyota Motor Corporation TM and Volvo VLVLY, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.The Zacks Consensus Estimate for GELYY’s 2024 sales suggests year-over-year growth of 36.6%. The earnings per share (EPS) estimates for 2024 and 2025 have moved up 34 cents and 54 cents, respectively, in the past 30 days.The Zacks Consensus Estimate for TM’s 2024 sales and earnings suggests year-over-year growth of 10% and 73.6%, respectively. The EPS estimates for 2024 and 2025 have improved $1.30 and $1.01, respectively, in the past 60 days.The Zacks Consensus Estimate for VLVLY’s 2024 earnings suggests year-over-year growth of 1.3%. The EPS estimates for 2024 and 2025 have improved 14 cents and 20 cents, respectively, in the past 30 days.