For the first three month of 2010, Honda Motor Co Ltd announced a profit of ¥72 billion (£502 million / €586 million) while quarterly sales were up 28% year on yar to ¥2.28 trillion.

The turnaround was attributed to the recovery in the main US and Japanese car markets as well as growing sales in burgeoning markets such as China.

Honda is forecasting a rise in profits of 27% for the current financial year.