PARIS, July 29 (Reuters) - French tyre manufacturer Michelin hiked its 2011 sales volume target after a rise in sales and profitability in the first half, and said its price increases were offsetting raw material price rises. The group said it would target a 2011 increase in sales volumes of about 8 percent, versus an earlier target of at least 6.5 percent, with market growth in the second half set to return to levels closer to those seen before the industry crisis.