GUANGZHOU -- Encouraged by its strong sales in 2008, Dongfeng Honda Automobile Co., Honda Motor Co.'s joint venture in China making the CR-V SUV and the Civic compact sedan, expects to maintain its sales growth in 2009 despite the market downturn.

 

Dongfeng Honda is planning to sell 180,000 units  in 2009, up by about 10 percent year-on-year, says Zhu Linjie, spokesperson of Honda Motor (China) Investment Co.

 

He also says Dongfeng Honda plans to expand its output capacity to 240,000 units from around 160,000 units at present. The company is running at full capacity now.

 

Dongfeng Honda sold 164,216 cars in 2008, a surge of 29.3 percent from 2007. The robust sales growth was mainly driven by the CR-V SUV, which shot up 76.4 percent year-on-year to 80,607 units in 2008, according to figures released by Honda Motor (China) Investment.

 

By contrast, growth was slower at Guangzhou Honda, the other China-based joint venture of Honda.

 

Guangzhou Honda sold 306,183 cars in China last year. Although it represents nearly 4 percent growth year-on year, the figure is well below the company's target sales of 340,000 units.

 

Guangzhou Honda produces the Accord sedan, Odyssey van, City and Fit subcompact cars.

 

The CR-V is a small SUV targeting city dwellers. The main reason the model is selling well is it doesn't have a serious competitor in China, says John Zeng, a market analyst at the Shanghai office of Global Insight.

 

But 2009 could be different for the CR-V as Toyota will start making a similar SUV, the RAV-4, in China, he adds.

 

Guangzhou Honda needs new model launches to boost its sales as the models it is selling now are relatively old, Zeng says.

 

Guangzhou Honda has yet to set its sales target for 2009.

to the skeptics that say, 'Let them die.' "