Honda reveals 23 percent increase in Q1 profit, revises sales forecast in China

(MENAFN) Honda Motor Co. announced a significant 23 percent rise in its first-quarter profit on Wednesday, driven by a weaker yen, higher pricing strategies, and a boost in hybrid vehicle sales both in the United States and Japan. For the April-June period, the company's operating profit reached 484.7 billion yen (approximately USD3.3 billion), surpassing the average analyst estimate of 472.4 billion yen as per a London Stock Exchange Group poll. Despite this strong performance, Honda has revised its annual sales forecast for China down by 21 percent to 840,000 vehicles, reflecting challenges in the Chinese market.

In the first half of the year, Honda reported a 2 percent increase in global vehicle sales, totaling 1.9 million units, with a notable 9 percent rise in the United States, which remains its primary market. However, the company experienced difficulties in China, where sales plummeted by 23 percent to 416,000 vehicles. Honda has maintained its full-year operating profit forecast at 1.42 trillion yen, but the reduced outlook for the Chinese market underscores ongoing challenges in one of its key regions. 

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