Honda has tripled its full-year profits prediction, hinting at a recovery for the automotive industry.
The car maker, which produces a large number of its cars in Swindon, said it expected to make 155bn yen (£1.02bn) instead of 55bn yen (£0.36bn).
Honda, like many manufacturers, has seen sales hit hard in the past year, and this is one of the first signs of an upturn in the industry.
Rebates and incentives for efficient cars have helped boost sales of Hondas, the firm said.
“Honda’s hybrid models have been selling well with the incentives,” said Yuuki Sakurai, chief executive officer of Fukoku Capital Management. “Whether or not real demand is picking up is still uncertain.”