Japanese automaker Honda today said it has raised its sales target in Malaysia this year to 18,000 units, up by half from the earlier 12,000 forecast, driven by strong demand for new models and competitive pricing.

But Honda officials ruled out any sharp reduction in car prices when Malaysia liberalises its auto market in 2005 under the Association of Southeast Asian Nations (Asean) Free Trade Area (Afta).

Honda Malaysia managing director Seiki Kuraishi said the sales target was raised following strong demand for its new 'City' model, which received some 10,000 bookings since it was launched in April despite a five-month wait.