Feb. 22 (Bloomberg) -- Honda Motor Co., Japan's second- largest carmaker, introduced a new Crossroad ``crossover'' sport-utility vehicle in Japan as it aims to reverse a slump in domestic sales.

Tokyo-based Honda expects to sell 3,000 Crossroads in the country a month, the carmaker said today. The Crossroad will be priced between 1.93 million yen ($15,946) and 2.92 million yen and comes equipped with 1.8 and 2-liter engines. The model will go on sale tomorrow.

The automaker, which last year surpassed Nissan Motor Co. in worldwide sales, is trying to boost domestic profitability. Honda expects to sell 0.6 percent more vehicles this business year in Japan, where overall auto sales have fallen for 19 straight months as aging models failed to attract buyers.

``New models are critical for Honda,'' said Ashvin Chotai, a London-based automotive analyst for Global Insight Inc. ``It's important for Honda to do well with the model.''

Honda's Crossroad crossover SUV targets customers from rivals' models including Toyota Motor Corp.'s RAV4 SUV, Corolla Fielder station wagon and Wish minivan, and Nissan's X-Trail SUV, Wingroad station wagon and Lafesta minivan.

``There is no competition for the model,'' said Honda President Takeo Fukui at a Tokyo press conference. ``The Crossroad may be the first of its kind in this market.''

So-called crossovers combine features of SUVs and other model types. Honda said the Crossroad has the potential to compete with SUVs, minivans, compact station wagons, and even hatchbacks, which altogether account for annual sales of about 1 million units in the world's third-largest vehicle market.

Operating Profit

In Japan, Honda's third-quarter operating profit plunged 45 percent to 41.9 billion yen from a year earlier, as the company set aside an undisclosed amount of cash for warranties and quality-related costs, the company said last month. Honda's minicar sales rose more than its larger, more profitable models in Japan, which also lowered domestic earnings.

Shares of Honda closed unchanged at 4,620 yen after they rose as much as 1.1 percent to 4,670 yen in Tokyo.

Honda expects its domestic vehicle retail sales to rise 0.6 percent to 700,000 units in the 12 months ending in March. The automaker aims to meet the target with help from the Crossroad and a redesigned version of the CR-V SUV, released in October.

Honda's domestic sales, including minicars, fell 4.5 percent to 483,000 vehicles in the nine months ended Dec. 31 from a year earlier, according to the company.

The carmaker combined its three domestic sales channels to one in March 2006 to sell every Honda model at all of its 2,400 outlets. Previously, each channel sold different models.

Japan has one of the world's shortest product cycles, with new models providing sales boosts for less than a year, according to analysts.

To contact the reporter on this story: Kae Inoue in Tokyo at kinoue@bloomberg.net

Last Updated: February 22, 2007 01:08 EST