Honda Motor is predicting that the current business year will see its group operating profit hit 1 trillion yen for the first time.
Officials at the Japanese automaker say output should rise on an easing of the semiconductor shortage.
Honda's executive vice president, Aoyama Shinji, said he believes that the supply of semiconductors will gradually recover toward next March. He added that in that scenario, car sales are expected to reach over 4.3 million units in fiscal 2023.
The company says sales will grow over 7 percent to a record 18.2 trillion yen, or about 135 billion dollars, in the business year through March.
Operating profit is expected to jump 19 percent to reach a record in yen terms of around 7.4 billion dollars. The growth is mainly expected to come from North America.
Nissan Motor is also forecasting its highest sales ever. The carmaker projects 12.4 trillion yen, or about 92 billion dollars, for its group companies in fiscal 2023.
It expects output and sales to recover in North America and Europe as chip shipments return to normal.