12 Best Automotive Stocks to Invest in According to Analysts

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8. Honda Motor Co. Ltd. (NYSE:HMC)

Upside Potential: 24%

Number of Hedge Fund Holders: 11

Honda Motor Co. Ltd. (NYSE:HMC) is a multinational automaker and motorcycle manufacturer. Its popular car models include the Civic, Accord, and CR-V, while its motorcycles, such as the Honda CBR series, dominate global markets. The company is also known as a pioneer in hybrid and electric vehicle development, producing the Insight, Clarity, and the Honda-e. The company also develops robotics, aviation technology, and hydrogen fuel cell solutions.

On February 13, Honda Motor Co. Ltd. (NYSE:HMC) and Nissan Motor Co. Ltd. (OTC:NSANY) announced the termination of their merger plan, initially signed in December 2024 and was believed to be valued at $60 billion. The decision was made after evaluating market conditions, integration structures, and stakeholder feedback. Honda Motor Co. Ltd. (NYSE:HMC) had proposed a stock swap making Nissan Motor Co. Ltd. (OTC:NSANY) a wholly owned subsidiary, but they couldn’t agree on the terms and both companies decided against integration to maintain agility in the fast-changing EV market. They will continue collaborating within a strategic partnership for electrification and intelligent vehicle development. The termination has no financial impact on either company.

Honda Motor Co. Ltd. (NYSE:HMC) is aligning its future growth with its transition to electric vehicles (EVs), planning $40 billion in investments for electrification by 2030. The company’s long-term plan targets 100% of its global vehicle sales to be EVs and fuel cell electric vehicles (FCEVs) by 2040. In January 2024, Honda Motor Co. Ltd. (NYSE:HMC) introduced a new global EV platform, the “Honda 0 Series,” with two next-generation models scheduled for launch in 2026, following the unveiling of two prototypes at CES 2025. Management is also focused on significantly reducing battery and production costs to enhance profitability. These initiatives are expected to support the company in achieving profitable growth and maintaining, as well as expanding, its market share in this highly competitive industry.

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