• India’s renewable energy service company OMC Power announced that Honda Motor has taken an equity stake to jointly develop clean energy storage batteries, as part of a new collaboration revealed this month.

• This partnership reflects Honda’s expansion into the fast-growing Indian clean energy market and its intent to accelerate battery technology capabilities.

• We’ll examine how Honda’s move into Indian clean energy storage could influence its growth outlook and diversification strategy.

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To be a Honda shareholder today, you need to believe in Honda’s ability to revitalize its automotive segment and leverage its strength in motorcycles to offset ongoing EV-related challenges. The company’s entry into Indian clean energy storage through OMC Power does not materially change the near-term catalyst, which remains Honda’s aggressive push for stronger hybrid and EV offerings in its core markets, while the top risk stays tied to losses and lagging competitiveness within its EV division.

Of the company’s recent moves, Honda’s revised guidance for higher operating profit and earnings for the fiscal year ending March 2026 stands out most. This announcement offers a more immediate catalyst for sentiment and shareholder value, reflecting management’s confidence despite existing margin pressure from trade volatility, price competition, and electric vehicle transitions.

By contrast, investors should be mindful that rising R&D and compliance costs tied to electrification could still…

Read the full narrative on Honda Motor (it’s free!)

Honda Motor’s narrative projects ¥22,320.2 billion revenue and ¥855.5 billion earnings by 2028. This requires 1.1% yearly revenue growth and a ¥217.7 billion earnings increase from ¥637.8 billion currently.

Uncover how Honda Motor’s forecasts yield a ¥1744 fair value, a 8% upside to its current price.

Fair value estimates from four Simply Wall St Community members range from ¥218.55 to ¥1,744.38. The ongoing risk of margin compression and stiff EV competition underscores why views on Honda’s future performance can be so different, see how your outlook compares.

Explore 4 other fair value estimates on Honda Motor – why the stock might be worth less than half the current price!

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