Honda Won’t Pull Back on Investment in China

President Takanobu Ito tells Bloomberg News that Honda Motor Co. won't change its investment plans for China despite the company's plunging sales there.

Honda volume tumbled 41% year over year to 33,900 units in China last month after a diplomatic dispute between Beijing and Tokyo stirred up violent anti-Japan sentiment among Chinese consumers.

Ito predicts that the political tensions won't last longer than six months. He says China may become the world's largest market for hybrid vehicles the advanced technology on which Honda is placing big bets.

The company also anticipates growing demand for smaller conventionally powered vehicles in China and other global markets as fuel prices rise. Ito says Honda will debut a family of updated Fit variants worldwide next year, including a sedan and SUV.