Honda Motor said on Thursday that it may raise its target for US sales this year after a good performance to date but that much would depend on what happened in September, Reuters reported.
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“We’re slightly ahead of plan at the moment,” executive vice president Koichi Amemiya told Reuters at the launch of Honda’s remodelled Life minicar, adding:
“But as to revising up or not, we have to look at September. August really was a clearance sale for the industry.”
Reuters noted that total US car sales hit their strongest pace in nearly two years in August as incentives – particularly from US brands – and an improving economy lured buyers into the showroom.
August’s seasonally adjusted US sales hit 19 million vehicles, above last August’s 18.6 million and the highest since the record of 21.1 million set in October 2001, the report added.
Reuters said Honda’s current US sales target for calendar 2003 is 1.35 million vehicles, a rise of 8.2% over the previous year. Its sales climbed 11% in August and are up 12% for the year to date.
The average incentive for a Honda vehicle is currently around $US800, compared with the industry average of $4,000, Reuters noted.
According to the report, Honda said it was aiming to sell 15,000 units of its 660cc Life mini vehicles a month – it is a key volume model for the car maker in Japan where it is having a comparatively weak year.
While minivehicles – a sector unique to Japan, accounting for roughly one third of the market – are not normally very profitable, company president Takeo Fukui told Reuters Honda had lowered costs on the vehicle.
Cheaper parts, particularly from China, as well as lower design costs had helped.
“We’ve significantly raised the amount of profit per vehicle,” Fukui said, according to Reuters.
