MANILA, Philippines – Honda Car Philippines, Inc. (HCPI), the country’s third largest automotive player, seeks to maintain its production volume of its local assembly even as the company sees a modest 5 percent growth in sales this year or 17,000 units against 2010 amid stiff competition in an expanding market.

Voltaire Gonzales, head of vehicle sales and corporate communications, told reporters at the launch of the new Honda Jazz model Tuesday that the new Honda Jazz model and the launch of some upgrades of its existing product lines within the year would support the company’s growth projection.

For the new Honda Jazz model alone, Gonzales said they expect an additional monthly sales of 20 units from the current monthly average of 200 units for the old model.

The biggest sales contributor would come from City, its bread and butter model, sells a monthly average of 700 units. The CRV model contributes 200 units per month and Civic for 250 units per month. Its top of the line model Accord sells an average of 20 to 30 units a month.

Honda Jazz, which is imported CBU from Thailand is directly competing against Ford Fiesta hatchback, Suzuki Swift and Mazda Hatchback, now accounts for 30 percent for its class.

The three variants of the 2011 Honda Jazz are set to rule the premium hatchback market with prices starting at P 752,000 for the 1.3 liter S MT, P792,000 for the1.3 liter S AT and, P857,000 fr the 1.5 liter V AT.

The 2011 Honda Jazz, which sports dynamic styling in every angle, is available in these exciting colors: Brilliant Orange (1.5 V only), Polished Metal (1.5 V only), Alabaster Silver (1.3 S only), Taffeta White and Crystal Black.

In terms of local production, Gonzales said they averaged between 11,000 units to 12,000 units annually for the past two years at its Sta. Rosa plant. HCPI is doing CKD (completely knocked down) assembly for City and Civic models while CRV and Accord are imported from Thailand.

Last year, HCPI assembled 11,000 units 8,900 units of which are City models. “We are going to maintain the same production level this year because we are able to grow the sales of CITY and we offer good financing,” Gonzales said.

Gonzales, however, admitted that the CITY is not ‘too affordable’, but stressed that it has a good resale value, less maintenance and fuel efficient.

The first quarter, he said, looks good because of a strong fleet account, which now accounts for 25 percent of its total customer base across all vehicle segments.

Gonzales also noted that CRV, which is now on the fourth year of its model life, is competing against 20 plus SUV models in the domestic market.

“We have a resurgence of demand for CRV from the more mature SUV market,” Gonzales. And as the cost of fuel continues to become a major consideration among motorists, Gonzales said the CRV is going to benefit from that. Last year, CRV sales grew by 23 percent.

The company, however, has been adjusting prices of its cars to reflect the increasing cost of importation.