Thursday, 21 July 2011

Honda cuts 2011 China car sales target by 13%

Honda Motor Co. said on Wednesday that it is cutting its 2011 car sales target for China by 13 percent after Japan's earthquake and tsunami in March disrupted its supply chain and forced production cutbacks.

Japan's No. 3 automaker lowered its sales target for China to 638,000 cars, down from its initial target of 731,500, and 2 percent lower than its 2010 sales.

Honda, which does not give a calendar year target for global sales, expects to sell 3.3 million cars for the financial year to March, down 6 percent from last year.

Last month, Honda forecast a worse-than-expected 65 percent fall in annual operating profit, bracing itself against a strong yen and rising raw materials prices.

It said it expects production in China to normalize by the end of July and that it will ramp up output in the second half of the year, but will not be able to fully offset the lost production.


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