Honda's world-wide sales rose 5.6 percent to 946,000 vehicles from the same period last year.

In June, Honda and the Toyota Motor Corp. increased production to meet rising demand from North America, Europe and Asia. Toyota raised global production 3.6 percent to 734,354 vehicles in June while Honda's global output rose four percent to 340,400 vehicles, the companies said in separate statements.

Additionally, net income of the second biggest Japanese automaker increased to ¥166.1 billion, or $1.4 billion, in the three months ended June 30, as compared with its ¥143.4 billion in 2006. Honda won customers in the United States, its biggest market, from domestics General Motors Corp. and Ford Motor Co. with its Civic compact cars and CR-V SUVs.

Toyota's overseas production rose 7.2 percent, while output in Japan increased by 0.3 percent to 368,513. The automaker's exports rose 9.6 percent to 242,101 and Honda exported 55,207 vehicles, down by 2.8 percent. Meanwhile, Honda's domestic production dived by 4.8 percent while overseas output climbed 9.2 percent, Bloomberg added.

Even amid increasing raw-material costs and expenses related to new production facilities Honda’s net is bolstered. Honda increased its net-profit forecast for the year ending March 31 to 625 billion yen, a 5.5 percent increase from the year earlier.