Honda reports slower sales growth at 23%

Honda Motor, Japan's first carmaker to make vehicles on the mainland, said sales of its Accord sedans grew only 23%, to 92,870 units, in the first 11 months of 2004, compared with a 60% growth in the second quarter. A spokesman blamed Beijing's credit control measures and price-cutting for the slowdown. Normally price-cutting increases sales, but in China the practice had induced many buyers to wait for announcements of deeper discounts, effectively slowing sales. Industry data suggests China-wide car sales will grow only 30% for the year, as against 76% in 2003.