Honda raises output on high demand

Honda raises output on high demand

Tokyo: Japan’s second largest car maker, Honda Motor Co. Ltd, increased global production in September to meet demand for small cars in the US and emerging markets.

Output rose 9.6% to 360,453 vehicles last month, the company said in a statement on Monday. Honda also benefited from one to two extra production days in the US this year.

The company is shuffling US production to keep factories busy and boost car output, while building fewer minivans and sport utility vehicles as light truck sales fall. Expansion in China is reducing Honda’s reliance on the US, where industry-wide sales this year have slid 13% through September, triggered by high fuel prices and a credit crunch.

“Honda has a focused strategy" emphasizing small cars over larger vehicles, said Hirofumi Yokoi, a Tokyo-based analyst at auto-consulting company CSM Worldwide. “That leaves them in pretty good shape right now."