Honda Motor Co. said Wednesday it hopes to boost its worldwide car sales to 4 million vehicles in fiscal 2007, up 23.4 percent from fiscal 2004, by launching new models with better fuel efficiency and expanding its lineup in North America.
With the increase, Honda hopes to post more than 10 trillion yen in sales in fiscal 2007. This would represent a 15.6 percent increase from the 8.65 trillion yen logged in fiscal 2004.
The sales targets are part of the automaker's three-year midterm business plan through the end of March 2008.
Honda sold 324.2 million vehicles globally in the year ending last March, exceeding the 3 million mark for the first time in its history.
By region, North America and Asia excluding Japan will be the two major pillars that will drive the automaker's profit up, Honda Executive Vice President Satoshi Aoki said.
Honda said it will launch the Japan-assembled Fit compact as an entry model in the United States and Canada next spring.
By adding the Fit, which is powered by 1.3- to 1.5-liter engines, Honda will expand its lineup in North America to meet growing demand, Honda President Takeo Fukui said. Currently, the automaker positions its 1.7-liter Civic series as its entry model in that market.
"We see strong demand for fuel-efficient, smaller cars in (North America) due to rising fuel prices," a Honda official said.
Under the midterm business plan, Honda said it will also focus on improving the fuel efficiency of its power train -- including engine and transmission.
Thai output going up Honda Motor Co. said Wednesday its Thai subsidiary will spend some 4 billion yen on doubling its annual engine component capacity to 300,000 units next spring.
The engine plant of Honda Automobile (Thailand) Co. produces the cylinder block and head as key components for Honda operations in Southeast and Southwest Asia.