Honda Motor on Wednesday said it expected sales growth in China to slow in 2010 following a surge last year after Beijing introduced emergency steps to promote new car sales.
Chief financial officer Yoichi Hojo told Reuters in an interview that the company’s global recall of about 440,000 vehicles including the Accord and Civic sedans would likely cost it about JPY2bn to JPY3bn (US$22m to $33m).
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Honda announced the recall on Wednesday due to defective airbags made by Japanese parts maker Takata in North America.
Hojo said Honda aimed to sell at least 632,200 vehicles in China this year, up 9% from last year, “even if there are minor shifts in the business environment.”
The targeted pace of sales expansion was slower than the 22% rise which Honda achieved there in 2009.
“Growth last year and in January were exceptional and owe much to tax cuts for cars with an engine displacement of 1.6 litres or less as well economic measures,” Hojo said.
“We see China as a promising market over the long run,” he said, adding that the market there could achieve annual growth of 15 to 20% over in the long term, given no major shift in government policies.
