TOKYO (AP) — Honda’s net profit rose 66% in the first half of its fiscal year, the Japanese automaker reported Tuesday, driven by strong motorcycle sales.
Tokyo-based Honda Motor Co. reported a profit of 516.76 billion yen ($3.3 billion) for the six months through September, up from 311.83 billion yen a year earlier. First half sales rose 13% to 12 trillion yen from 10.6 trillion yen.
The robust results came despite costs in its electric vehicle program,
where it dropped some models. Honda said EV-related losses erased 484.8 billion yen from its operating profits.
But officials stressed that Honda expects battery EVs might eventually become more popular and it will remain flexible enough to switch to EV production in the future.
Honda raised its full-year operating profit forecast to 780 billion yen from 650 billion yen.
Honda attributed the more optimistic forecast to favorable exchange rates and efforts to reduce the impact of U.S. tariffs, including shifting production to the United States.
The maker of the Super Cub motorcycle and Accord sedan also announced major production investments in North America and Brazil.
Honda plans to build a new auto production plant in Ohio, increasing production capacity in North America to 1.91 million vehicles by 2029 from 1.67 million. The company expects U.S. demand to grow, especially for its hybrid models.
Honda also plans to expand production of its motorcycle business at its Manaus factory in Brazil, increasing capacity to 2.3 million motorcycles by 2029 from the current 1.6 million.
Honda marked a record for fiscal first half sales in its motorcycle division, as its models proved popular in Brazil and India. It sold 11.9 million motorcycles during the six months, up from nearly 10.8 million the previous year.
However, Honda sold 1.57 million automobiles globally in the first half of the year, down from 1.68 million.
Honda shares, which have risen over the past year, had slipped 1.6% in Tokyo trading on Tuesday before the financial results were released.
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Yuri Kageyama is on Threads: https://www.threads.com/@yurikageyama
