Honda June China sales down 2.7 percent on strikes

SHANGHAI | Sun Jul 11, 2010 10:57pm EDT

SHANGHAI (Reuters) - Honda Motor (7267.T) said on Monday its China auto sales in June fell 2.7 percent from a year earlier, the second straight month of declines in a market that grew nearly 20 percent during the period.

Industry analysts attributed the decline to labor strikes at Honda's suppliers over the past several weeks, as well as at one of its China car plants which caused production disruptions at Guangqi Honda, its car venture with Guangzhou Automobile.

Guangqi Honda reported a near 24 percent fall in car sales in June.

Dongfeng Honda, a tie-up with Dongfeng Motor Group Co (0489.HK), which was hardly affected by labor troubles, reported a 40 percent sales gain in the month.

(Reporting by Fang Yan and Jason Subler; Editing by Jacqueline Wong)

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