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Honda doubling shifts in Ayutthaya


The Japanese carmaker plans to raise local sales by 27.2% from last year to 145,000 units including the Brio, an eco-car that will debut in the first quarter. Honda predicts the overall automobile market will grow at a slower pace to 850,000 units this year from actual sales of 803,000 last year. However, president Atsushi Fujimoto said the company's export volume would remain unchanged at 60,000 units, as the stronger baht is making exports less profitable. Australia and Japan are the local Honda unit's main export markets. To meet the combined sales forecast of 205,000 units, Honda will add a second work shift during the first half of this year to raise annual production from the present level of 120,000 to 130,000 units. The Ayutthaya plant has a maximum annual capacity of 240,000 units. This year's expected higher sales will be contributed in part by the Brio eco-car, the City, the Jazz and the Civic. Other models include the Accord and the CR-V, as well as the Freed mini-multipurpose vehicle, which is imported from Indonesia under the Asean Free Trade Area. Honda does not make pickup trucks, the most popular vehicles sold in Thailand. Mr Fujimoto also reaffirmed that Honda has no plans at the moment to introduce hybrid models to match Toyota, which now markets two locally - the Camry and the Prius. He is not yet certain whether petrol-electric models can do well locally, as sales of at least one of the Toyota hybrids have begun to flag. Honda exports all of its hybrid Insight, Civic and Accord models produced here. "We will see further whether hybrid models are actually accepted by local consumers and if so, identify which group to target first," said Mr Fujimoto. He also threw his support behind the government's move to restructure vehicle excise tax rates to take better account of reduced carbon dioxide emissions and high fuel efficiency. The proposed new structure is more appropriate than the existing one based on engine capacity, said Mr Fujimoto. Meanwhile, Honda yesterday introduced the new Jazz, which features a refreshing facelift and upgraded features to reinforce the company's leadership in the five-door subcompact category. The new Jazz offers dual airbags and an anti-lock braking system on all models, making it the first subcompact to offer enhanced safety features for both driver and occupants. In Thailand, 135,375 Jazz units have been sold since it first debuted in 2003. It comes in three versions priced from 590,000 to 715,000 baht, all of them equipped with a 1.5-litre engine.