Honda sales to beat forecast

       Honda Motor Co, Japan's second-largest carmaker, expects full-year vehicle sales in India and Thailand to exceed forecasts,the company's head of Asia operations said.
       Sales in Thailand this calendar year may reach last year's level, compared with a forecast for a 20% decline, while sales in India will fare better than the estimated 20-30% drop, Fumihiko Ike,president of Asian Honda Motor Co,said in an interview in Tokyo yesterday.
       Compared with Europe and the United States, recovery of these Asian economies has been slightly faster, Mr Ike said.Banks started loosening credit relatively early, which has helped because a high ratio of people buy cars and motorcycles on credit.
       Economic recoveries in India and Thailand are boosting sales of Honda's Jazz and City compact cars. India's economic growth may accelerate to as much as 7.8% this year as the US economy shows signs of bottoming out, the finance ministry said recently.
       Thailand's economy is sure to grow this quarter for the first time in a year as government spending and improving global demand spur expansion, Finance Minister Korn Chatikavanij said this week.
       Honda started selling the Jazz compact in India in June. The company also plans to introduce a small car targeting India and Thailand, which will be smaller than the Jazz, within two to three years, Mr Ike said.
       It may export the car from Thailand to other countries in the region, he added.
       "There is a huge income disparity gap in these countries, and our new product will meet untapped demand,"he said.
       The car, with an engine of less than 1.2 litres, will qualify for Thailand's ecocar project. The car would be sold in India at a price equivalent to the average annual salary, Mr Ike said.