Toyota and Honda both double profit forecasts

2020 has been a bumpy ride.

Not least for carmakers.

Toyota earnings slid 24 percent in the second quarter, but on Friday (Nov 6) the company appeared to be back in the driving seat.

It more than doubled its full-year operating profit forecast.

The maker of the RAV4 SUV and Prius hybrids says a rebound in China has been a force.

It says demand in China has increased for its electric cars and Lexus luxury brand.

Japan's top automaker now expects an operating profit of $12.6 billion for the year through March.

That's up from the $4.8 billion it had previously predicted.

Reaction from investors though was somewhat muted.

Shares closed up just 0.5%, lagging gains on Japan's Nikkei index.

One analyst told Reuters that "Investors are looking at how Toyota is faring overseas"

Adding that with a "resurgence of the coronavirus, we have to consider the forecast revision cautiously".

Toyota now expects to sell 9.4 million cars this year - up 3.5% from a previous forecasts..

And the auto giant wasn't alone in its optimism.

Also on Friday Honda more than doubled its full-year operating profit forecast.

The automaker reported second-quarter earnings grew 28%, also amid a rebound in China.

It said it now forecasts a full-year operating profit of over $4 billion.