How Has Honda’s Changing Sales Mix Impacted Its Profitability?
Honda’s vehicle mix has been changing from being dominated by passenger cars to higher contribution from light trucks and mini vehicles in recent years. Higher contribution of trucks and mini vehicles in the sales mix led to growing sales and operating profits before the company was hit by a sharp decline in operating profits on the back of high selling, general and administrative expenses in fiscal 2015.
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Notes:
1) The purpose of these analyses is to help readers focus on a few important things. We hope such lean communication sparks thinking, and encourages readers to comment and ask questions on the comment section, or email content@trefis.com
2) Figures mentioned are approximate values to help our readers remember the key concepts more intuitively. For precise figures, please refer to our complete analysis for Honda Motor
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