Honda ready to top market expectations
Robust sales growth in emerging markets has helped global automakers to weather a fall in mature markets such as Europe, and Honda has especially benefited from its lucrative and dominant motorcycle business in developing countries such as India.
But a convincing recovery in the US car market – Honda’s biggest – is the main factor that has stoked optimism among investors, sending its shares up nearly a fifth over the past three months.
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Hide AdHonda, which fell behind Nissan Motor Co to become Japan’s third-biggest automaker last year, raised its operating profit forecast for the year to March 31 to 620bn yen (£4.75bn) from 500bn yen.
Japanese car makers have taken steps to improve manufacturing efficiency and reduce fixed costs to cushion the blow from the yen’s rise.