TOKYO-Demand for some Subaru vehicles in the U.S. could outstrip production as Fuji Heavy Industries Ltd. expects to hit a sales target more than two years early, the chief executive of the auto maker said Thursday.
Surging sales in the first three months of 2013 followed by a 25% leap in April have convinced Fuji Heavy it has the momentum to beat not only its 365,000 vehicle target in the U.S. for the current calendar year in but also its 380,000 target for the business year ending March 2016, CEO Yasuyuki Yoshinaga said in an interview.
His optimism underscores the company's growing success in the U.S., where it now logs about half its global sales and where it scored a fifth straight year of sales gains in 2012.
But the CEO said the car maker may not be able to take full advantage of soaring demand because of its relatively limited production capacity.
Sales of the redesigned Forester could reach 10,000 vehicles this month, above a monthly target of 8,000, but only if the company can build enough, he said. It ships all the SUVs from Japan.
"If this situation persists, we'll face a supply shortage," Mr. Yoshinaga said.
This year's initial Subaru sales target in the U.S. rep-resented an 8.6% increase over the previous year. But a 17% rise in sales to 125,470 vehicles for the first four months of the year strongly indicates that this year will be a banner year for Fuji Heavy. Sales in April were particularly strong thanks to the launch of the remodeled Forester small sport-utility vehicle in March.
The company "will have to set a new target as we are likely to hit" the current goal for the U.S. this year, Mr. Yoshinaga said.
Fuji Heavy projects a second straight year of record operating profit for the current business year to March 2014 on the back of solid U.S. sales and a weaker yen.
The rosy outlook made the company's shares the best performing stock among auto makers in the Tokyo market, even though it is the smallest volume Japanese car maker.
The firm's efforts to focus more on the U.S. market in the past decade are helping build extra momentum on top of the solid resurgence in the overall market.
The Subaru maker now develops vehicles to better meet American customers' tastes by making them wider and roomier. It is also enhancing sales networks in Southern states where sales have been relatively weak.
Its latest growth strategy for the market was outlined earlier this month. It said it would increase annual production capacity by 100,000 vehicles to 300,000 at its plant in Indiana by 2016.
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