Honda Motor Co Ltd’s (OTC:HNDAF) shares fell 2.1% on Nov 28, 2014 after the company posted weak monthly production and sales data. Honda’s worldwide production volume for Oct 2014 was 402,627 units, down 4% from Oct 2013. This is in sharp contrast to the 6.6% increase in production in the Jan–Oct period. Production outside Japan declined 0.6% to 326,633 units in October. Meanwhile, production in Japan plunged 16.2% to 75,994 units in the month. In comparison, the company reported a 26.3% surge in production to 821,128 units in the Jan–Oct period.
The decreased production outside Japan was due to a 50.2% decline in production in Europe and a 4.8% drop in other regions. North America registered a 3.1% increase in production despite a 4.6% year-over-year decrease in the U.S. Production in Asia, which was affected by a 14.9% decline in production in China, inched up 0.1% to 126,978 units.
Sales in the Japanese market went down 9.5% year over year to 59,144 units in October. New vehicle registrations plunged 20% to 30,416 units. Mini vehicles’ sales augmented 5.1% to 28,728 units.
Fit was the second best-selling vehicle in the industry among new vehicle registrations (excluding mini vehicles) in Oct 2014 with sales of 13,506 units. VEZEL was the seventh top-selling vehicle with sales of 7,663 units.
Under the Mini vehicles category, N-BOX was the second best-selling vehicle with sales of 13,989 units. N-WGN was the fifth highest-selling vehicle in the industry with sales of 9,387 units.
Export from Japan plummeted 75.7% year over year to 2,767 units in October. The decline was driven by weaker exports to all markets.
Currently, Honda carries a Zacks Rank #4 (Sell). Investors interested in the auto industry could consider better-ranked stocks like Gentex Corporation (NASDAQ:GNTX), Douglas Dynamics Inc (NYSE:PLOW), and Strattec Security Corporation (NASDAQ:STRT), all sporting a Zacks Rank #1 (Strong Buy).