Honda exports first Acura models to China from US

DETROIT - Honda said today it had exported its first Acura models from the United States to China as part of an expansion of its US-based luxury brand to Asia.

Acura TL sedans are scheduled to go on sale starting in September in dealerships in China, Honda said.

The first wave of those vehicles, all of which are assembled at Honda's Marysville, Ohio plant, were off-loaded in Shanghai this week, the company said.

Honda launched the Acura brand to create a separate luxury division for its products in the US market in 1986. The mid-size TL sedan is the brand's top-selling model, accounting for almost 40 per cent of sales in the first half of 2006.

Under a plan announced in July 2005, Honda is taking its Acura brand to China this year and then to its home market of Japan in 2008.

Honda said it expected to sell 3000 Acura models in China in the first 12 months of operations there.

"China is one of the fastest-growing markets in the world and we are confident that Acura will be at the forefront of China's luxury market," John Mendel, senior vice president of American Honda said in a statement.

Mendel said in March that Honda was expecting between 3 per cent to 5 per cent growth in Acura sales in the US market in 2006.

While Honda's overall sales rose 7 per cent in the first half, Acura sales were off 8 per cent.

Acura is relying in part on a new model, the turbocharged RDX sport utility vehicle, to take market share from the likes of BMW AG over the remainder of this year.

Honda has forecast that its youth-oriented RDX, which will be marketed to young professionals and double-income couples, could hit annual sales of 30,000 to 50,000 units. The new model goes on sale August 10.

- REUTERS