Dec. 20 (Bloomberg) -- Hino Motors Ltd., Japan's largest maker of heavy trucks, aims to boost sales 11 percent in 2008 on rising demand in emerging markets.

Hino, half-owned by Toyota Motor Corp., plans to sell 118,200 trucks and buses worldwide next year, it said in a statement today. Overseas sales will climb 21 percent to 71,700 units while sales in Japan will fall 2.3 percent to 46,500 units.

The Tokyo-based maker of Ranger trucks is expanding in Asia, the Middle East and Latin America, where construction booms are fueling demand for commercial vehicles. Growing sales in emerging markets helped Hino raise its full-year profit forecast in October.

``Strong demand for trucks in resource-rich countries such as the Middle East and South Africa will continue for at least the next two to three years,'' said Toshisuke Hayami, an analyst at Macquarie Securities Ltd. in Tokyo. ``Japanese trucks are renowned for high quality and durability, and people want to buy them even though they are more expensive.''

Hino fell 9 yen, or 1.3 percent, to 694 yen at the close of trading on the Tokyo Stock Exchange.

The truckmaker plans to raise global production 10 percent to 117,500 vehicles next year, the company said. Output in Japan may drop 3 percent to 44,900 while overseas production will climb 20 percent to 72,600.

Japan Sales

Japan's truck sales fell 24 percent to 159,325 in the 11 months through November, as freight operators have finished renewing their fleets to meet tougher rules on emissions implemented in October 2005. Hino's domestic sales dropped 14 percent in the period, while rival Isuzu Motors Ltd. sold 24 percent fewer vehicles in the country.

Hino's operations in North America may fail to turn a profit in the fiscal year ending March 31, President Shoji Kondo said at a press conference in Tokyo today. The company started operating its first U.S. assembly plant in Williamstown, West Virginia last month and previously forecast a profit for the region.

The company may revise its original plan of building 2,500 medium- and heavy-duty trucks a year at the $8.6 million plant, Kondo said. The facility is now making two trucks a day, compared with a target of 10 a day, he said.

Hino raised its full-year net income forecast to 22 billion yen ($194 million) from a previous estimate of 20 billion on Oct. 31, when it announced first-half earnings. Overseas sales rose 25 percent in the six months to Sept. 30, offsetting a 20 percent drop in domestic sales.

To contact the reporters on this story: Kiyori Ueno in Tokyo at kueno2@bloomberg.net; Tetsuya Komatsu in Tokyo at tekomatsu@bloomberg.net

Last Updated: December 20, 2007 01:13 EST