Honda said Thursday its net profit for the fiscal year ended March fell 1.7% from a year earlier to ¥695.27 billion ($5.2 billion), hurt by a fall in vehicle sales in China and the United States.

But for the current business year through next March, the Japanese automaker forecast a 15.1% rise in net profit to ¥800 billion as it plans to expand sales volume globally.

Honda said due to the impact of the end of a tax reduction policy for cars in China, sales of automobiles in the major market fell by nearly 20% in fiscal 2022 from the previous year to 1.24 million units. It said sales in the United States decreased by 28% to 1 million units.