Honda CEO targets Europe and emerging markets

LONDON: Honda Motor Co Ltd chief executive Takanobu Ito has said that company intends to boost its output of 'kei' cars in Japan and deploy its expertise in building the car in Europe and emerging markets, the Financial Times reported on Wednesday.

Ito said that Honda aimed to increase the proportion of kei cars in its total output from 25 percent to 40 percent within five years.

Kei cars are a Japanese category of small vehicles.

"Having this business is going to guarantee the future growth of Honda - to maintain our business in the Japanese market, and it's also going to guarantee the future success of Honda in the global market as well," he is quoted a saying.

Sales of cars with small engines sized 660cc or less, which enjoy special tax breaks in Japan, account for just below 40 percent of Honda's home market now, a proportion it expects to increase to 45 percent in 10 years.

Copyright Reuters, 2011