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Honda: global losses offset in Chinese market

By Zhang Ranran (China Daily)
Updated: 2009-04-29 07:47

Japanese carmaker Honda Motor Co expects its China sales to grow by 10 percent this year partly to offset its slump in other major markets affected by global financial woes, according to a top executive from the company's China operation.

Atsuyoshi Hyogo, chairman and president of Honda's regional operations (China), said the company aims to sell 520,000 vehicles in China this year, up from 473,000 units in 2008.

"Market conditions in China and Brazil remain fairly good amid the world's financial crisis. We should speed up efforts there to achieve better results to make up for losses in North America, Japan and Europe," Hyogo told reporters.

China will be Honda's "most competitive" markets this year as the country's economy and auto industry are still growing steadily, he said.

Overall vehicle sales in China rose by 3.88 percent year-on-year to 2.68 million units in the first quarter, surpassing the US as the world's top vehicle market for the first time, according to latest industry data. Full-year sales are predicted to reach 10 million units this year.

Honda runs joint ventures with China's Guangzhou Automobile Group Corp and Dongfeng Motor Corp.

Kanayama Hironori, the newly appointed president of Guangqi Honda Automobile Co, the venture with Guangzhou Automobile, said his company expects to sell 330,000 vehicles this year, up from 306,000 units in 2008. The venture, which is making the Accord mid-sized sedan, Fit subcompact, City compact and Odyssey MPV, plans to launch an all-new Odyssey at the end of this year.

Its other venture with Dongfeng, based in central city of Wuhan, said it plans to boost sales to 180,000 vehicles this year from 164,000 units last year. The venture is producing the Civic compact and CR-V SUV.

The company plans to introduce a new imported Civic hybrid in June and put a SR-9 mid-sized sports concept, which was displayed at the Shanghai auto show, into commercial production during the second half of this year.

Asked whether he worries about that the SR-9 will erode sales of the Accord, Guangqi Honda's Hironori said: "I have no concerns about it as China's vehicle market is growing rapidly. It (the SR-9) will likely expand the mid and high-end segment."

Dongfeng Honda said the SR-9, which is to target young, dynamic upscale buyers, will go head-to-head with Audi A4 and BMW 3 Series.

Guangqi Honda plans to roll out the first model under its all-new brand, the "Li Nian", next year. The brand, without a Honda logo, was created in 2008.

Honda is also selling imported Acura luxury vehicles in China.

(For more biz stories, please visit Industries)