Tokyo - Japan's second-largest automaker, Honda Motor Co, said Thursday that it sees no need to revise its earnings projections for the current fiscal year despite worries about a global economic slowdown.

The remarks by Honda President Takeo Fukui came after his counterpart at market leader Toyota Motor Corp said the business outlook for the automotive market was "very severe."

As world stock markets fall as part of the global financial crisis, consumer spending has been affected, Toyota President Katsuaki Watanabe said.

Watanabe predicted that the key North American car market would remain in the doldrums next year. The situation was a "big" problem for the Japanese economy, he said.

"Monetary authorities and governments worldwide are taking various steps [to cope with the turmoil], and I hope the effects of those measures will emerge soon," he said.

Japanese media reported that the world's largest carmaker considered lowering its profit forecasts because of weak global demand and a strong yen.

Honda, however, is maintaining its earnings forecast for the business year ending March 31 with a 630-billion-yen (6.29-billion-dollar) operating profit, Fukui said.

Honda plans to launch a new car design in Europe, China and India in a few years as the company foresees demand for small cars growing amid rising oil prices.

The new model is to have an engine displacement of less than 1 litre, smaller than the 1.3-litre subcompact Fit series, which is known in Europe as Jazz. (dpa)