Honda Motor on Wednesday raised its projection for full-year operating profit by 2.8 percent as it anticipates to sell more vehicles and bikes this year, especially in Asia, while it likewise sees cost reductions and a weaker yen increasing its bottom line.
Japan’s third-biggest automaker prepares for an operating profit of 745.0 billion yen ($6.54 billion) in the year to March, that is boost from a previous projection of 725.0 billion yen because of stronger vehicle sales in China, and it also anticipates motorcycle sales in India, Indonesia and Vietnam to keep boosting.
“In China, we’re seeing strong demand for the Civic, Accord and the CR-V models, in addition to SUV models,” Executive Vice President Seiji Kuraishi informed.
“At the moment we can’t keep up with demand there.”
Honda anticipates to sell 5.13 million vehicles worldwide in the year to March, up from a previous projection of 5.08 million units. It also raised its worldwide bike sales projection by 2.2 percent.
Honda’s revised profit projection is based on the presumption of the yen trading around 109 yen to the U.S. dollar JPY=, weaker than a previous projection for 107 yen.
The new projection still represents an 11.4 percent operating profit slide from 2016, and is lower than projections for 807.6 billion yen from 23 analysts polled by Thomson Reuters I/B/E/ S.