July 21 2005.
Honda Motor Co. aims to post group sales of 10 trillion yen in fiscal 2007, up 16% from fiscal 2004, according to a new business plan it announced Wednesday.
The three-year plan, which starts in fiscal 2005, also calls for a 23% increase in automobile sales to 4 million units worldwide in fiscal 2007.
The major automaker hopes to meet these goals by expanding operations in such key overseas markets as Asia and North America.
The company is looking to sell 16 million motorcycles worldwide in fiscal 2007, up 39% from fiscal 2004. And sales of power products, including general-purpose motors and power generators, are expected to climb 23% to 6.5 million units.
In Thailand, Honda plans to spend roughly 4 billion yen to double its automobile engine production capacity to 300,000 units a year next spring. Some of these engines will be supplied to the firm's manufacturing bases in other Asian countries.
In India, the carmaker intends to launch production of the Civic in 2006. Output of these vehicles will likely start at an annual rate of 50,000 cars and rise to 100,000 by 2010.
In its mainstay market of North America, Honda is gearing up to start selling its Fit subcompact in Mexico in October by importing them from Brazil. The Fit is also slated to be introduced in the U.S. and Canadian markets next spring as Honda's new entry-level model. The cars for these markets will be exported from Japan.
Honda had announced earlier that it will discontinue the NSX luxury sports car at the end of this year. But the company "hopes to release a successor that is equipped with Honda's first V10 engine in three to four years," President Takeo Fukui said.
The automaker also has set a goal of improving the fuel economy of its cars, motorcycles and power products by 10-30% by the end of fiscal 2007.
Fukui added that Honda plans to start leasing fuel-cell-powered motorcycles in around 2009.

Source: The Nihon Keizai Shimbun