Honda Motor has raised its full-year financial forecasts after reporting a quarterly profit increase, marking the first such rise in six quarters.
The improvement was driven primarily by a weaker yen, which helped offset the headwinds of declining global vehicle sales and elevated material costs linked to the ongoing Iran war.
The results highlight the diverging pressures facing Japanese automakers.
While demand softness and geopolitical supply-chain disruptions continue to weigh on the sector, favorable currency movements are providing a critical buffer for exporters.
Honda’s ability to lift guidance suggests that the yen’s depreciation is currently outweighing the margin erosion from higher input costs and lower unit volumes.
This development follows similar reporting from peers in the region, including Nissan, which recently returned to quarterly profitability through cost-cutting measures while warning of persistent headwinds in China and West Asia.