Honda has reported operating profit for the first six months (fiscal year to 30 September) up by 243.1 billion yen to 696.5 billion yen (+53.6% versus the same previous year period).

Operating profit margin was 7.2%, up from 5.6%.

The gain to profit reflected much higher sales – on improved availability, especially in the US – and currency effects (weak yen vs dollar). In the April-September period, Honda sales in Japan were up to 257,000 units (+1% versus H1 2022) and in the US up to 686,000 (+49% vs H1 2022). However, Honda sales in China were down 13% on last year at 611,000 units. Honda blamed expansion of the NEV market in China and intensified price competition for the China reversal.

With respect to the forecast for fiscal year 2024, Honda said that although environment has been challenging in China and Asia, as well as higher warranty costs, favourable currency effects and higher sales mean that operating profit and net income forecasts have been revised upwards. Honda said its operating profit projection is now revised upward by 200.0 billion yen to 1,200.0 billion yen.