- Deliveries climb more than 50% for both Vezel and XR-V models
- China’s tax cut on smaller-engine models spurring demand
Honda Motor Co. raised its forecast for full-year profit as demand for Vezel and XR-V sport utility vehicle models surged in China, the carmaker’s second-largest market.
Net income will probably rise to 415 billion yen ($3.96 billion) in the fiscal year ending in March, more than the 390 billion yen forecast in May, according to a statement from the Tokyo-based automaker. The projection compares with the 491.8 billion yen average of 20 analysts’ estimates compiled by Bloomberg.
Honda boosted deliveries of the Vezel and XR-V models each by more than 50 percent, as carmakers selling in the world’s biggest auto market benefited from a sales tax cut for vehicles with smaller engines. China’s government is looking at extending the levy reduction set to expire this year, potentially helping Honda rebound from unprecedented recalls of...