Honda said on Tuesday that net profit more than doubled in the third quarter and revised up its full-year forecast as the global car industry shows signs of recovery.

The Japanese firm’s net profit in the three months to December came to 284.1 billion yen (€2.23bn), up from 116.4 billion yen for the same period a year earlier.

The profit gain was mainly down to “increased efficiency of R&D expenditures and cost reduction efforts,” Honda said.

The coronavirus pandemic has taken a heavy toll on the global car sector, but demand recovered swiftly in the second half of last year, notably in the United States and China.

Demand recovered swiftly in the second half of last year, notably in the US and China

Honda, which revised its annual forecasts up last quarter, further upgraded its net profit outlook to 465 billion yen for the fiscal year to March, up from its earlier estimate of 390 billion yen.

Rival carmaker Nissan is due to publish its earnings later on Tuesday.