Honda Motor Co. expects to return to profitability in the current fiscal year, but analysts say this recovery is not enough to guarantee that the struggling automaker will soon regain its growth momentum.
Earlier, Honda announced a comprehensive restructuring of its electric vehicle (EV) strategy, including cost cuts, a focus on key markets, and deeper partnerships. Even so, the road ahead remains challenging, especially amid fierce competition from Chinese and U.S. rivals.
The Japanese automaker is facing significant pressure from the shift to electric vehicles, as sales in key markets like North America and Asia show no strong signs of recovery. Investors are also cautious, waiting for more concrete steps from Honda in executing its new strategy.
