New Jazz boosts Honda

Honda, Japan's second-biggest carmaker, is counting on the second-generation Fit, sold as the Jazz in some markets, to reverse a slide in domestic sales, where popular 660cc minivehicles have eaten into the subcompact segment.

The car, which is roomier and more fuel-efficient than its predecessor, is set to overtake Toyota Motor Corp's Corolla sedan as Japan's best-selling car, excluding minicars. It last claimed the No. 1 spot in September 2006.

Hit by a slump in the overall market, Honda last month lowered its domestic retail sales forecast by 4 percent to 660,000 cars for the business year to the end of March 2008. It expects a rebound to around 700,000 cars next year, with help from the Fit and a beefed-up minivehicle line-up.

Honda is due to launch the new Fit/Jazz in North America, Europe, China and other markets over the next year.