Despite billions of dollars in losses on electric vehicles, Honda raised its profit forecast

Honda raised its full-year operating profit forecast by 20% even after booking a ¥484.8 billion ($3.2 billion) cost tied to its revised electric-vehicle strategy. The Japanese automaker is leaning on strong U.S. demand for hybrid vehicles to offset pressure on sales in China. The charge reflects the balance-sheet impact of shifting its EV roadmap, while the profit upgrade signals that hybrids remain the company's near-term earnings engine. Investors will watch whether U.S. hybrid demand holds and whether Honda can stabilize its China business.