Honda revises worldwide and Chinese sales goals for 2012

Gasgoo.com (Shanghai November 1) - Having suffered a massive drop in its sales in China, Japanese manufacturer Honda announced that it will be revising its 2012 worldwide and Chinese sales targets, Economic Observer News reported today. The cuts signify that Honda expects its overall net profits this year to be 20 percent less than previously anticipated.

Last month, Honda released its market evaluation for the recently concluded third quarter. According to the evaluation, the manufacturer's sales in China fell a full 40.5 percent in September. In response, the manufacturer has lowered its Chinese sales target for the year from 750,000 vehicles to 620,000 vehicles, a decrease of 17 percent. Honda expects this year's overall net profits to total 375 billion yen ($4.7b).

Honda also pointed out that its two Chinese joint ventures are both in the process of reducing production, mainly by reducing worker shifts. Reduced production policies will last until mid-November. The manufacturer expects production and sales in the country to gradually recover. Honda hopes to see its Chinese operations return to normal by next February.

China is now Honda's second largest market after the US, and accounted for 17 percent of its global sales in 2011. Executive Vice President Tetsuo Iwamura has previously mentioned that it will continue to expand in the country, with its plans to establish production sites in Guangzhou and Wuhan still in effect.