"Honda's targets are very bullish in the U.S., but competition in the market is very fierce this year," said Issei Takahashi, a Tokyo-based auto analyst at Credit Suisse Group. "Toyota's new Corolla will come later this year, and that may have an impact on Honda's Civic sales."
Honda's operating income from North America for the quarter fell 65 percent to 29 billion yen in the quarter and missed the 61.2 billion yen average analyst estimate.
Honda CEO Takanobu Ito has targeted annual worldwide car sales of 6 million by end-March 2017, compared with a record 4.01 million in the last financial year.
The automaker is also targeting to sell a record number of vehicles this year as a weaker yen and demand in the United States, its biggest market, helps the company buffer the drop in sales in China where a territorial dispute has fueled anti-Japan sentiment.
Honda expects global deliveries in the 12 months ending March 2014 to climb 10 percent to 4.4 million vehicles, led by sales of the redesigned Accord sedan in the U.S. and the new Fit hybrid compact, its best-selling model in Japan.
Honda wants to grow rapidly by focusing on emerging markets and small cars, and the automaker is expanding capacity globally. It plans a new plant in Thailand that will open in 2015. This year, it will add an extra line at a factory in Malaysia, start operations at Yorii in Japan and then open a new plant in Mexico in 2014.