Jan. 20 (Bloomberg) -- Suzuki Motor Corp., Japan's largest minicar maker, plans to raise global vehicle sales 10 percent this year on higher demand in Europe and Asia.

The company plans to sell 2.22 million vehicles in 2006, Suzuki, based in Shizuoka Prefecture southwest of Tokyo, said today. Domestic sales may rise 1 percent to 705,000, while overseas sales may gain 15 percent to 1.515 million, Suzuki said.

Suzuki, 20 percent owned by General Motors Corp., has avoided the world's largest car market, the U.S. and opted for countries with less competition. It has built factories in Hungary and India to meet local demand. The company's unit in India, Maruti Udyog Ltd., controls half of the country's market.

``It's a good idea for Suzuki to focus on markets other than the U.S.,'' said Ichiro Takamatsu, a chief investment officer at Alphex Investments Co. in Tokyo. ``Suzuki has gotten a head start in entering emerging markets.'' Takamatsu declined to comment whether he owns Suzuki shares.

The company expects sales in India to rise 15 percent to 595,000 units. Sales in China may rise 38 percent to 200,000 vehicles. In Europe, the company expects to sell 310,000 units, an increase of 17 percent. In North America, Suzuki plans to sell 100,000 units, up 11 percent.

The company last month started to make the SX4 sport-utility vehicle in Hungary for sale in Europe from April, Chairman Osamu Suzuki told reporters in Tokyo. Suzuki plans to sell 40,000 units of the model a year in Europe and supply 20,000 units to co- developer Fiat SpA of Italy.

The company will open a new factory to build the Swift and other models in the country in October, Suzuki said. The maker of Alto minicar will make its existing models such as its 22-year- old model powered with a 0.8-liter engine, he said.

``We will continue selling the 0.8-liter model as an entry car for consumers in India, because the number of people who can afford to buy cars is increasing,'' Suzuki said.

Minicars were the fastest growing market in Japan last year with sales rising 1.7 percent to a record 1.92 million units. They're becoming more popular in rural areas where public transportation systems are poor, the Japan Mini Vehicles Association said.

Higher fuel price also prompted some consumers to buy minicars, as they offer better fuel economy and also have lower tax and insurance rates, compared with those using larger engines, the group said.

To help spur sales, Suzuki will begin selling a redesigned version of the MR Wagon minicar on Jan. 30 in Japan with a monthly sales goal of 6,000 units. The model will compete with Nissan Motor Co.'s Moco and Daihatsu's Move models.

The MR Wagon is priced between 1.02 million yen ($8,800) and 1.35 million yen, Suzuki said. Daihatsu's Move has a starting price of 934,500 yen. Nissan will later this year get the new version from Suzuki.

Suzuki plans to boost its motorcycle sales in 2006, as the company this month said it will start to sell motorcycles in March in India. The company competes with Honda Motor Co. and Hero Honda Motors Ltd.

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