Honda Sales Fall In China In July

Honda Motor Company has recorded a 23 percent fall in sales in China last July. Being the biggest fall in 17 months, they now have their doubts about achieving the company's full year sales target.

Honda had set a target to increase sales in China to 18.9 percent this year, but grew only 6.9 percent in the first seven months.

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A few factors for this decline were tough competition and a seasonal decline in demand, a Honda spokeswoman said. She said sales would increase in the second half after the launch of new models.

Honda is expected to launch a small utility vehicle and a crossover utility version of the Honda Fit around September. Honda is looking to take advantage of these vehicles' popularity in China.

The other Japanese automaker Toyota Motor Corp. also saw a decline in sales by 1.1 percent this July, and 7.6 percent a year ago.

Honda, with its two domestic joint ventures sold 39,543 units in China this past July. Since February 2013, this was the biggest recorded drop in sales.

Honda had sold 3,92,959 units in the first seven months this year. Joint ventures with Dongfeng Motor Group Co Ltd and Guangzhou Automobile Group Co Ltd, Honda has targeted to sell 9,00,000 units this year.

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