Honda Motor Co.'s China vehicle sales rose 18.5 percent in the first nine months of this year, underperforming growth of the overall market and of other foreign automakers.
Honda, maker of the Accord, Civic and Odyssey models, sold 225,974 vehicles in China during the period, up from 190,651 in the first nine months of 2005.
Sales at its Guangzhou Honda venture climbed 7.7 percent to 185,690 vehicles, while sales at its venture in central China gained 21 percent to 40,284, it said today.
China's overall vehicle sales surged 25 percent to 5.17 million units in the January to September period, according to figures provided by the national auto association.
Rival Toyota Motor Corp. sold 203,000 vehicles in China during the period, a jump of 164 percent. Ford Motor Co. sold 114,685 vehicles in the period, up 105.5 percent from a year earlier, while Volkswagen AG moved 524,558 vehicles, up 28.7 percent.
Analysts blame Honda's relatively moderate growth on a limited product portfolio, as it has been slower than some rivals, including General Motors, to roll out new models. GM has yet to release sales data for the first nine months.
NEW MODELS NEEDED
Honda's Accord, sold in China since the late 1990s, has been its most popular model in the country. But competing models such as Toyota's Camry, launched in May, are now grabbing customers.
"It's a tough market here. Honda needs to bring in new models and replicate the success of the Accord," said Zhao Shengli, a senior industry analyst with Galaxy Securities.
In April, Honda added a new Civic sedan to its portfolio, which includes Fit compact cars and the CR-V. Last month, it brought to China its top-line Acura sedan -- a hot seller in North America -- hoping to compete head-on with BMW, Volkswagen's Audi models and DaimlerChrysler's Mercedes-Benz.
Honda's executives in China were not immediately available to comment.
But a company spokesman said in July that the automaker maintained its target of selling 353,000 vehicles in the country for the full year, banking on a seasonal sales pick-up near the end of the year. Sales came to 257,000 units in 2005.
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