Honda may post H1 operating profit on China sales

Shanghai, October 22 (Gasgoo.com) Honda Motor may post a first-half operating profit on sales in China and at home, Bloomberg reported today.

A Nikkei report said the company may have an operating profit of 60 billion yen ($660 million) for the six months ended Sept. 30. Honda spokeswoman Natsuno Asanuma declined to confirm or deny this.

Honda Motor sold 59,140 vehicles in China in September, up 27% from a year earlier. The company's China sales during the January-September period totaled 409,162 units, up 15% year-on-year. The sales were achieved by its Chinese ventures Dongfeng Honda and Dongfeng Honda.

China has also introduced tax cuts and subsidies, helping raise sales for automakers including Honda Motor and General Motors. Honda boosted sales in Japan 15% last month as the government also offered incentives to revive flagging car demand.

Honda President Takanobu Ito said earlier this month the carmaker may beat its forecast for a 10 billion yen operating loss in the period. The company may post an operating profit of 84 billion yen, according to Bloomberg.

Honda has racked up record production in China, although worldwide production for Japan's No. 2 automaker declined year-on-year for the 10th straight month.