Honda hopes to wheel out 730,000 auto sales in 2011

Honda Motor Co said Friday it would target sales in China of 730,000 vehicles in 2011, for growth of more than 10 percent from the 650,000 estimated for this year.

"We expect the overall (Chinese) market to grow by an average 10 percent," Seiji Kuraishi, head of Honda's China operations, told reporters in Tokyo. "We will aim for a growth of more than 10 percent, of around 730,000 units."

Honda operates 50-50 joint ventures with Guangzhou Automobile Group Co and Dongfeng Motor Group as well as a majority-owned factory building the Fit/Jazz subcompact model for exports to Europe.

Honda's production capacity in China is set to rise to 890,000 cars a year in 2013 as it strives to keep up with demand. Kuraishi said that while Beijing was moving towards fiscal tightening and discontinuing tax incentives on smaller cars next year, growth will be rapid in inland regions, which are replacing coastal cities as the major driver of car sales. While hybrid cars have yet to gain ground in China, Honda will aim to build the fuel-efficient cars locally as soon as possible, Kuraishi said.

Reuters