Honda China sales climb 12% in July

Shanghai, August 6 (Gasgoo.com) Honda China sales in July climbed 12% from a year earlier to 56,688 vehicles. Moreover, its sales in the first seven months of this year rose 20.3% year on year to 366,263 units, Yoichi Hojo, Chief Financial Officer of Honda Motor said today.

In July, Honda boosted its sales from last year's 50,647 units to 56,688 units, of which its Chinese joint venture Guangzhou Honda's sales were up 6.6% at 34,525 units while the other venture Dongfeng Honda's sales jumped 21.3% to 22,163 units.

The Japanese automaker did not give a reason for the rise in sales amid a series of labor disputes at its Chinese operations in recent months, but said labor only accounts for 2% of its overall production costs, compared with about 20% in developed counties, so basically, the disputes did not influence its profit.

In June, Honda China sales slid 2.7% to 50,113 units. Honda expects to sell 630,000 vehicles in the country this year from 579,601 units in 2009.

China is the world's largest auto market and rivals like Toyota Motor Corp. have also in recent months been plagued by strikes and rising labor costs in the country.