Honda Motor reported a 23% increase in first quarter profit as it benefited from a weaker yen, higher pricing and growing hybrid vehicle sales in the US and its home market.

Reuters said quarterly operating profit totalled JPY484.7bn (US$3.3bn) in the April-June period, compared with an average estimate of JPY472.4bn in a poll of seven analysts by LSEG.

The company maintained its full year operating profit forecast of JPY1.42trn while slashing its sales outlook for China by 21% to 840,000 vehicles for that period.

Honda had said last week its global vehicle sales grew 2% to 1.9m over the first six months of the calendar year, due largely to a 9% rise in sales in the US, its top market.

In contrast, it faced heavy headwinds in China where it saw sales slump 23% to 416,000 vehicles, Reuters added.