Reuters reports that the Indian subsidiary of Honda Motor Co. expects to wipe out its accumulated losses in this fiscal year to March 31. The report says that the company has been boosted financially by surging demand for its best-selling City model. The City, a three-box version of the Fit/Jazz has proved popular in India and won a number of Awards including Autocar India’s coveted Car of the Year.

Hajime Yamada, chief executive of Honda Siel Cars India Ltd, told reporters on the sidelines of a news conference, that the firm’s volume sales in 2003/04 were expected to jump 65 percent, Reuters reported.
Honda Siel Cars, a joint venture between Japan’s second largest automaker and local firm Siel Ltd, makes the City sedan and the Accord luxury family car in India. It also sells the fully imported CR-V sports utility vehicle.

“By the end of this year (to March 2004), our sixth, we would have wiped out all our accumulated losses,” Yamada said at the event, where it unveiled a new version of the Accord with a 3.0 litre petrol engine to add to the existing 2.4 litre model.

Reuters said that company officials expect the firm to post a net profit of 750-800 million rupees ($16.6-17.7 million) in the fiscal year to March 2004 when it expects to sell nearly 22,000 cars.