Honda Motor Co. aims to double its worldwide vehicle sales to 6 million in five years, as demand for small cars like the carmaker’s Fit/Jazz subcompact continues to rise in emerging markets including China and India. In five years, Honda plans to increase its vehicle sales in Japan, the United States, Europe and other developed markets, to 3 million from about 2 million for the year ended March 31, 2012, according to chief executive Takanobu Ito.
The Japanese carmaker also plans to double its sales in emerging markets like India and China to 3 million units in five years. For the fiscal year ended March 31, 2012, Honda sold 3.1 million vehicles around the world. Spearheading Honda’s charge to achieve that sales goal will be its Fit/Jazz subcompact car and its derivatives, as well as the Brio small car, Ito disclosed.
During a news conference, Honda’s CEO admitted that the target number is “quite a big figure” for the carmaker, adding that there were debates over whether the company should make it public. He remarked that unless the carmaker set a goal and work to figure out how they can achieve it, Honda’s business operations “won't be specific.”
Ito said that for Honda to achieve sales of 6 million units, the Fit will be very important and will be the leader in volume sales. Ito also has high hopes for the Brio compact, which it expects would post the highest volume sales next to the Fit.
Honda will also market the Brio in emerging markets. Honda is building new plants in Mexico and Japan to produce the Fit and its derivatives. The carmaker will commence production at its Yorii plant in Japan in July 2013 and at its Mexican plant in spring 2014.