Propelled by robust sales, Honda’s profit surged by more than a third in the latest quarter in North America. The strategic introduction of higher-margin products, including hybrids, was pivotal in bolstering the company’s strategic sales initiatives. As a result, Honda revised its forecast, anticipating a record operating profit for the fiscal year.

During the fiscal third quarter ending Dec. 31, Honda’s operating profit surged by 35 percent, reaching 379.8 billion yen ($2.69 billion), compared to 280.4 billion yen ($1.99 billion) in the corresponding period last year, as outlined last Thursday in Honda’s financial report.

Revenue streams imporved by 21 percent, reaching 5.39 trillion yen ($38.23 billion) in the three-month period. Concurrently, global sales experienced a robust increase of 24 percent, with 1.18 million vehicles sold during the quarter.

Honda is capitalizing on pent-up demand as the global semiconductor shortage gradually becomes a thing of the past. The company’s strategic emphasis on gasoline-electric hybrids is proving to be a boon for profits.

In North America, Honda’s second-largest market, total vehicle deliveries surged to 433,000 units representing a 36 percent increase for the company throughout the quarter. Meanwhile, sales in Asia witnessed a 17 percent uptick to 518,000 units, albeit tempered by softer demand in China.

Deliveries in Europe contributed an additional 7,000 units, totaling 25,000 vehicles over the three-month period.

The depreciation of the Japanese yen against the dollar and other currencies enhances the value of overseas revenues when repatriated back home providing favourable foreign exchange rates and improved cost management.

Honda anticipates a 60 percent surge in operating profit, projecting a record 1.25 trillion yen ($8.87 billion) for the current fiscal year ending March 31, 2024. This revision marks an increase from the earlier expectation of finishing the fiscal year with 1.20 trillion yen ($8.51 billion) in operating profit.

Furthermore, Honda forecasts global vehicle sales to reach 4.1 million units in the current fiscal year, ending March 31, 2024, from last years 3.69 million vehicle sales, representing an 11 percent increase.