Motoring demand for electric vehicles has boosted sales at American Honda (HMC) since the start of 2025.
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The group reported a 3.8% increase in sales for January, reaching 96,774 units. This was despite severe winter weather in several parts of the U.S. It said it had achieved record sales in light trucks and electrified vehicles overcoming supply chain issues from the temporary closure of two Ohio plants in December for EV production preparations.
Strong Demand Across the Range
Demand was strong across its range, with electrified vehicles setting a new January record at 29,762 units. Hybrid models led the growth in this sector.
In its light truck segment, Honda achieved record January sales of 62,245 units with TrailSport models accounting for 18% of sales. The Honda Civic led passenger car sales with 16,173 units heading onto the highway.
Honda Steering Through Change
The figures come at a busy time for both Honda and the U.S. car industry. Honda is gearing up to launch a new sub-$30,000 Electric Vehicle in the U.S. market to challenge electric and gas-powered rivals. This followed newly elected President Trump’s decision in his first hours in office to ditch predecessor Joe Biden’s order that half of all new vehicles sold in 2030 should be electric.
Trump’s decision to impose tariffs on Canada, Mexico and China is also likely to impact the auto market with analysts expecting the move to hike prices. In addition, Honda and Nissan are expected to unveil more news about its proposed merger plan later this month.
Is HMC a Good Stock to Buy?
On TipRanks, HMC has 1 Buy rating.
