Honda has raised its sales target at home in Japan in the next fiscal year ending March 2014, up 16% to 850,000 vehicles.

Just last month Honda cut its full-year global sales forecast to 4.12m and slashed its profit forecast by a fifth after sales in China were hit by a backlash against Japanese goods.

However, according to the Nikkei newspaper, sales in Japan are expected to jump 22% in the year ending March 2014, boosted by increased demand for minivehicles.

Honda also plans to gain more market share next year with its redesigned Fit subcompact and adding SUV and sedan versions starting next fall, along with a hybrid Accord, the Nikkei said.

Honda plans to sell 350,000 units in the first six months and 500,000 units in the second half in 2014.