Honda Goal: Increase 2003 Global Sales 10% To 3.1 Million Cars

TOKYO December 18, 2002; Dow Jones reports that Honda Motor Co. aims to sell 3.1 million cars globally in 2003, up 10% from an estimated 2.82 million units in 2002, the second-largest Japanese carmaker said Wednesday.

For comparison, Toyota Motor Corp., Japan's biggest carmaker, said Tuesday it is pegging its global sales in 2003 at 5.79 million units, up 5% .

Honda's global sales have expanded for the last two years. For the period before 2000, the company has no global sales figures based on the calendar year.

The carmaker also lifted its 2003 domestic sales target by 4.4% to 940,000 units. Toyota aims for domestic sales of 1.72 million units, up 2% on year.

Honda aims to sell 1.35 million cars in North America in 2003, up about 10% from its estimated sales volume in 2002, Honda Motor's President Hiroyuki Yoshino told a news conference.

Honda plans to double the annual capacity of its plant in China that makes cars for local sale, to 240,000 units by spring 2004 from a targeted capacity of 120,000 in February 2003, Yoshino said.

Honda also plans to hike annual capacity at its Thailand plant to 120,000 units by mid-2003, from 70,000 now, Yoshino said.

In Brazil, Honda will boost annual capacity at its car assembly plant to 50, 000 units in 2003 from 30,000 now as the plant will start manufacturing the company's "Fit" subcompact there in spring, Honda's Yoshino said.

The Fit, marketed in Europe as the "Jazz," has sold well in Japan and some other markets and is expected to become the best-selling car in Japan in 2002.

In China, Guangzhou Honda Automobile Co., Honda's joint venture with a local company, plans to spend CNY660 million to boost output and enhance plant facilities, Yoshino said. Guangzhou Honda will finance these steps using profits instead of receiving fresh investment from its parent companies, a Honda spokeswoman said.

These output hikes and facility enhancements are to come ahead of the planned launch of the fully remodeled "Accord" in China in January and the "Fit Saloon" model there in summer, the Honda president said. The Fit Saloon will be Honda's third passenger car model to be produced in China after the Accord and the " Odyssey" minivan.

Yoshino added that apart from its official sales target for Japan, Honda has set an internal target of selling a record 960,000 cars in the home market in 2003.

Honda also plans to start importing the popular "Acura MDX" and "Element" sport utility vehicles from its North American plants, according to Yoshino. The company will also launch a new sedan model aimed at a relatively large market segment in Japan, he said.

Asked about foreign exchange rate fluctuations, Honda Motor Senior Managing Director Satoshi Aoki said the impact on earnings would be limited unless the dollar moved Y20-Y30 or more on a yearly basis compared with a year ago.