Hino Motors Likely to gain 3% on back of growing demand
Published On Feb 01, 2016
According to the reports, Hino Motor's profits may go up marginally by 3% over year-on-year sales, thanks to the growing demand in Japan. Company's sales in April-December period have scaled up by 7 percent to about 1.3 trillion yen.
There is a sharp resurgence in construction and transport industry of Japan, thanks to the re-development of projects in the capital city. Also there is an increase in number of visitors to japan that fueled demand for buses in the region. According to the Automobile Dealers association in Japan, Hino's bus and truck sales have rose to 8 percent to 43,000 units in the year 2015.
Hino Motors registered a sales growth in the regions of Mexico, Latin America, Middle East and other emerging markets. However, there is a marginal slowdown in Southeast Asian markets. Indonesian market, which makes for 20 percent of overall company's sales, was slowed down due to resource development factors. In addition to this, sluggish sales in Thailand added to the slowdown.
In the April-December period, Japan's currency traded 14 yen weaker to US dollar. This should help boost company's profits further compared to previous year. Hino foresees 4 percent growth in operating profit to 110 billion Yen.