Per Business Insider, Honda Motor Company (HMC - Free Report) plans to launch two fully-electric vehicles in 2018. Of which, one will be unveiled in China and the other in Europe.
In June, Honda announced the upcoming model launch for the Chinese market, the world’s largest market for electric vehicles. With the expected number of electric-vehicle sales in China to exceed 4 million by 2025, these vehicle launches will help Honda strengthen presence in the country.
Further good news is that the company will be launching Urban EV Concept, the first electric-vehicle to woo European customers.
Honda Motor Company, Ltd. Price and Consensus
These electric-vehicle introductions are in line with Honda’s Vision 2030 strategy plan, which announced an increasing research and development effort for electric vehicles and self-driving technology. Further, the company is also aiming to electrify two-third of its automobiles by 2030.
Currently, the company sells all-electric Clarity cars in the United States with a range of 89 miles per charge.
The strict regulations to check air pollution in China lie in favor of electric-vehicles, thus making it an ideal market for sale of such cars. Apart from Honda, many major automakers are rolling out their electric-cars in the country. Recently, the Renault-Nissan partnership has decided to manufacture battery-powered cars. (Read more: Renault-Nissan to Manufacture Battery-Powered Cars in China).
Shares of Toyota have lost 4.5% year to date, marginally underperforming the industry’s 3.4% decline.
Zacks Rank & Other Key Picks
Honda currently flaunts a Zacks Rank #1 (Strong Buy).
A few other automobile stocks with the same bullish rank are Allison Transmission Holdings Inc. (ALSN - Free Report) , Renault SA (RNLSY - Free Report) and Toyota Motor Corporation (TM - Free Report) . You can see the complete list of today’s Zacks #1 Rank stocks here.
Allison Transmission has a long-term growth rate of 11%.
Renault has a long-term growth rate of 4.6%.
Toyota Motor Corporation has a long-term growth rate of 7%.
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