Honda cuts 2011 China car sales target by 13%
Published on July 21, 2011 by Tycho de Feijter
Honda Motor Co said on Wednesday it was cutting its 2011 car sales target for China by 13 percent as Japan’s earthquake and tsunami in March disrupted its supply chain and forced production cutbacks, Reuters reported.
Honda lowered its sales target for China to 638,000 cars, down from its initial target of 731,500, and 2 percent lower than its 2010 sales, the report said.
Honda does not give a calendar year target for global sales. It expects to sell 3.3 million cars for the financial year to March, 6 percent lower from last year.
Honda last month forecast a worse-than-expected 65 percent fall in annual operating profit, bracing itself against a strong yen and rising raw materials prices, the report said.
It said it expects production in China to normalize by the end of July and that it will ramp up output in the second half of the year, but will not be able to fully offset the lost production.