Toyota and Honda announce their boosted net profit forecast in 2020
On Friday, Toyota Motor Corp (7203.T) and Honda Motor Corp (7267.T) announced that they had doubled their operating profit forecasts in light of the recovering car demand in China as it rebounds from the coronavirus outbreak.
“If you compare our second quarter with the first, you can see a dramatic recovery,” Toyota’s Operating Officer Kenta Kon said in an interview after Japan’s biggest car manufacturer released its earnings results.
The Japanese multinational automotive manufacturer said that the car demand in the world’s biggest auto market had grown for six straight months. The firm’s market sales climbed by 12.8% in September 2020.
China’s overall economic recovery had also improved by 4.9% compared with its 3.2% growth in the previous three months.
“Given the yen’s appreciation (versus the dollar) and a resurgence of the coronavirus, we have to consider the profit forecast revision cautiously,” Nomura Securities’ Fund Manager Kazuo Kamiya stated.
Nissan Motor Co (7201.T) announced that it would post its second-quarter results next week.