Toyota, Honda Raise Global Production on Higher Overseas Demand
Bloomberg.com: March 29,2008
March 28 (Bloomberg) -- Toyota Motor Corp. and Honda Motor Co., Japan's two largest carmakers, raised February auto production to meet growing demand in emerging markets.
Toyota increased global production 13 percent to 767,999 vehicles in February, and Honda's output rose 10 percent to 332,563, the companies said in separate statements today. Nissan Motor Co., Japan's third-largest automaker, raised production 14 percent to 322,257 vehicles.
Japanese carmakers are boosting production in growing markets including China, India and Russia, as demand slows in the U.S. Toyota opened its first plant in Russia in December, and Honda is setting up a second factory in India.
``Japanese carmakers are increasing local production in emerging markets in step with demand,'' said Hirofumi Yokoi, an analyst at auto consulting firm CSM Worldwide in Tokyo.
Toyota, excluding affiliates Daihatsu Motor Co. and Hino Motors Ltd., raised overseas production by 21 percent to 375,542 vehicles. Domestic output rose 6.1 percent to 392,457 vehicles.
Toyota aims to sell 8.93 million vehicles worldwide this fiscal year on higher demand in the Middle East and Asia excluding Japan. It will start selling Camry sedans, RAV4 sport- utility vehicles and Prius hybrids in South Korea next year.
Russian Assembly
In December, Toyota opened a plant in St. Petersburg, its first in Russia, to assemble as many as 50,000 vehicles annually. The automaker also expects sales in China to reach 700,000 vehicles this year.
Honda's overseas output jumped 21 percent to 226,421 on higher demand for CR-V sport-utility vehicles and Fit compacts. Domestic output fell 8 percent to 106,142 vehicles.
Tokyo-based Honda aims to boost auto sales in India 32 percent next fiscal year after doubling its annual vehicle production capacity in the country to 100,000 units. It is also setting up a second factory in northern Rajasthan state. Honda makes City, Civic and Accord models in India and imports CR-Vs.
Nissan's February overseas production rose 5.3 percent, and domestic output gained 28 percent.
Nissan, 44 percent owned by Renault SA, forecasts higher sales in Russia, China and the Middle East will counter slowing demand in the U.S. and Japan. Sales for the year starting April 1 will exceed the current year's target of 3.7 million vehicles, Chief Executive Officer Carlos Ghosn said on March 21.
Nissan India
The carmaker will also build a 45 billion rupee ($1.1 billion) plant in the Indian state of Tamil Nadu with affiliate Renault. The plant, to start production by 2010, will have a capacity of 400,000 cars a year and build four models.
Mitsubishi Motors Corp., Japan's fastest-growing car exporter, increased global production 12 percent to 128,606 units. Domestic output rose 18 percent to 86,909 vehicles.
The carmaker is closing its Australian plant, while adding production in Russia and China after raising exports 41 percent last year.
Suzuki Motor Corp., Japan's second-largest minicar maker, built 235,160 vehicles worldwide, an increase of 8.5 percent, it said today. The company made 1.5 percent fewer vehicles in Japan, while overseas production jumped 17 percent.
Its Indian subsidiary will start selling the Swift Dzire sedan in the company's biggest market tomorrow. Suzuki also plans to use India as an export hub for small cars.
Fuji Heavy Industries Ltd., the maker of Subaru-brand cars, raised production 16 percent to 54,657.
Toyota rose 100 yen, or 2 percent, to 5,210 yen as of 1:41 p.m. on the Tokyo Stock Exchange. Honda rose 15 yen to 3,000 yen, and Nissan rose 4 yen to 854 yen.
