Honda sees record year on 6% rise in global sales

Honda expects its global sales to rise 6 percent this year to a record 3.76 million vehicles, thanks to booming demand in the United States, Europe and Asia, President Takeo Fukui said Wednesday.

The positive outlook is expected to continue into next year, Fukui told reporters at a Tokyo hotel.

Honda's North American sales are forecast to grow 3 percent to 1.59 million vehicles next year, adding to an expected 3 percent growth this year to 1.55 million vehicles, he said.

Honda did not give an overall global sales forecast for 2008. But it said sales will grow in nearly all regions around the world in 2008, including North America, Europe, China and even in Japan, where sales have declined this year.

Honda will introduce four new models in Japan to draw buyers, Fukui said.

Like Toyota Motor Corp., Honda has received a sales boost from the recent surge in oil prices that is adding to the appeal of Japanese offerings known for having good mileage.

The 2007 sales projection is up from 3.55 million vehicles in 2006.

Fukui said Honda will introduce a new hybrid model with an affordable price tag in 2009, targeting sales of 200,000 vehicles a year. Honda will focus more on hybrid offerings so that overall hybrid sales will make up around 10 percent of sales by about 2010, he said.

Hybrids, which run on a gas engine and electric motor, deliver better mileage than standard gas engines and have grown in popularity in recent years because of soaring gas prices.

Fukui brushed off the competition from Toyota, which makes the Prius, the top-selling hybrid.

"The competition in hybrids has just begun," he said.

Honda will invest ¥48 billion in a new research center in Japan to focus on next-generation cars, including hybrids and fuel cells, he said.

The center will be partially running by 2009 and fully open by 2010, and will also focus on research for new technology for Honda's Acura luxury brand models, he said.

"The need to strengthen research in Japan is critical for Honda's continued global growth," Fukui said.