AFX News Limited
Honda targets to raise global sales to 4 mln in fiscal 2007 - report
07.17.2005, 06:09 AM
TOKYO (AFX) - Honda Motor Co aims to increase global car sales by 20 pct from fiscal 2004 to 4 mln vehicles in fiscal 2007, the Nihon Keizai Shimbun reported, citing company sources.
The major automaker hopes to achieve its target by tapping into strong demand in the US and China, and also expects domestic car sales to jump 10 pct.
Fiscal 2004 sales rose 10 pct to 3.24 mln units, hitting the 3 mln mark for the first time ever.
The company expects sales in the US to climb 15 pct from fiscal 2004 to 1.6 mln vehicles in fiscal 2007. The subcompact Fit, which is due to hit the market there in 2006, is projected to sell 60,000 vehicles a year. New sport-utility vehicles will also be released through the firm's upscale Acura dealerships.
In China, the company plans to raise output capacity next year at its three local plants operated jointly with Chinese firms. Sales are projected to double to 500,000 units as production of the Civic will begin.
In Japan, Honda plans to carry out a full model change of the Fit by mid-2007, with a view to boosting sales 10 pct to 800,000 units.
Sales in Europe have recovered after stagnating for some time. The company expects to boost sales in the region 30 pct to 350,000 vehicles by promoting cars with diesel engines.
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