Honda on target for 50,000 sales

Keep a keen eye on the advertisements if you're in the market for a new Honda between now and the end of the year.

The car maker has an internal target of 50,000 sales this year -- 10,000 more than last year -- but so far it is running behind.

Honda has sold 25,000 new cars in the first seven months of this year and, to date, is only 1.4 per cent up on the same period last year. In order to achieve its 50,000 annual sales target, Honda will need to increase sales over the coming months by close to 25 per cent.

This means there will be either big discounts or lots of special promotions -- or both.

Honda has already trimmed $500 off the City sedan and $2000 off the top-line Civic sedan, but more discounts and special offers are expected.

Honda was caught out by a slow start to the year. January sales were weak when it was left short of stock.

Since then the ships have started rolling in and Honda is revving up its dealers for a big finish to the year.

"We think we will get close to 50,000," said Honda Australia managing director and CEO, Satoshi Matsuzawa. "Maybe not exactly 50,000, but close."

When asked which brands were Honda's strongest opposition, he said "all of them" and then later highlighted the impact that the growth of Volkswagen, Mazda and Subaru had made on his brand in recent years.

"They are very aggressive and very competitive. It is a challenging market."

Australia is one of the most competitive new-car markets in the world, with 46 brands competing for 1 million annual sales, compared to 38 brands in North America competing for about 10 million sales and 42 brands in the UK competing for about 2.5 million sales.

If Honda Australia cracks the 50,000 mark it will be a welcome return to form for the Japanese company, but still not as good as its record Australian sales of 60,529 set in 2007.

Honda Australia has cracked the 50,000 mark only three times in the past 10 years but is under increasing pressure from head office to perform given the strong growth of Mazda, which is a much smaller rival in its homeland, Japan.

Honda will also have to get its growth without the addition of the luxury Acura brand -- or the rumoured small city car that is destined to be built in India and Thailand.

Speaking during a media tour of Honda's two-year-old Thai factory about 80km north of Bangkok, Matsuzawa-san said there were still no plans to introduce Acura in Australia even though Nissan has announced the Infiniti luxury brand would return to Australia in 2012.

"We don't have the [sales] volume yet," he said. "Maybe if we get to 80,000 Honda sales, then we consider Acura. But for now, no."

Meanwhile the unnamed new Honda city car to be built in India and Thailand is also not confirmed for Australia.

"We will look at it, but it depends on the business case and the currency," he said.

The car may also not have contemporary safety standards given that it is designed to be a low-cost car for developing countries. It was described by one insider as Honda's Tata Nano.

Matsuzawa-san also ruled out a front-drive-only version of the Honda CR-V even though an increasing number of car makers are offering such vehicles.

"Not this generation, maybe next generation," he said.

The CR-V (pictured) has just undergone a mid-life facelift so it will likely be around for another two-to-three years before an all-new model arrives.

Meanwhile the next generation Civic sedan is due next year, but Honda Australia has not revealed whether it will also be available as a hatch from the Thailand factory. Currently, Honda imports the European hatch made in the UK. Given the unfavourable exchange rates the current Civic hatch is more expensive than its main rivals.

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