Honda Motor Co said on Friday it would increase R&D spending this financial year by nearly a quarter to boost its competitive edge in hybrid and other electrified vehicles, as it forecast a 2.8% rise in operating profit for 2024/25.

Honda Motor Co. on Friday said it would ramp up its spending on research and development ofelectrified vehicles in 2024 and issue its largest-ever stock buyback after reporting record profits.

Honda Motor Co. forecast another year of record profit on solid demand for hybrids in the US and two wheelers in Asia. Japan’s second-largest automaker said it expects an operating profit of ¥1.42 trillion ($9.