Japanese car manufacturer Honda Motor Co. recorded an 8.1 percent profit in the first quarter of fiscal year 2008. The growth is unexpectedly high considering the decreasing demand on the car market. The record gas prices which hammered the car industry actually spurred demand for Honda’s fuel-efficient Fit and Civic cars.

Honda, Japan’s second largest car maker, posted a net income of 179.6 billion yen ($1.7 billion), or 98.98 yen a share for the three months ended June 30. Over the same period of the fiscal year 2007, the Tokyo-based company had earned 166.1 billion yen, or 91.38, a year earlier. Sales fell 2.2 percent to 2.87 trillion yen and Honda is still behind Toyota Motor Corp.

Honda’s most sold car was the Fit, the most fuel- efficient small station wagon sold in the country. The company’s earning from ventures in China and elsewhere also climbed 3.2 percent to a record 38.1 billion yen.

The company founded by Soichiro Honda and currently headed by CEO Takeo Fukui trimmed its global auto sales forecast to 4.08 million from 4.14 million on anticipated auto sales declines in North America, Asia and Europe.

Honda’s profit stands in a high contrast with the earnings other global car manufacturers reported. Ford Motor Co. posted an $8.7 billion loss for the second quarter, while Daimler AG’s second-quarter net profit fell 26%.

Revenue dropped 2.2 % from a year earlier to ¥2.867 trillion on a strengthening yen against the dollar, a fact which reduced the company’s overseas earnings. Over this quarter, Honda sold 962,000 vehicles, up 1.7% from the same period last year. Sales were up in China and Brazil, while in North American sales dropped 1.1% to 460,000 for the quarter.