Mazda likely to raise Japan H1 output target

Mazda Motor Corp could raise its domestic production outlook for the April-September half by about 10 percent as stimulus programs in Japan and abroad boost demand, the Nikkei business daily reported.

Sales are rising faster-than-expected aided by tax breaks on green cars in Japan and subsidies for automobile purchases in Europe and other overseas markets, the paper said.

Mazda will likely build nearly 400,000 vehicles in the first half of fiscal 2009, compared with its previous expectations of slightly more than 350,000 vehicles, the Nikkei said, without citing sources.

In July, the automaker posted a third straight quarterly loss as car sales plunged worldwide, but kept its annual forecasts relying on cost cuts to offset weak demand.