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UPDATE 1-Toyota boosts 2002 global sales target

(Recasts, adds more Toyota comments, details, share price)

TOKYO, July 29 (Reuters) - The world's third-largest automaker, Toyota Motor Corp , boosted its 2002 sales target on Monday by 3.3 percent, expecting an increase in overseas sales despite a surge in the yen.

Japan's largest automaker said it expects to sell 6.19 million vehicles this year, up 200,000 from an original plan and compared with group sales of 5.93 million in calendar 2001.

The revision came despite a 12 percent rise in the yen against the dollar since April, a leap that makes Japanese cars more expensive when sold overseas and poses a challenge for automakers who reaped currency gains last year as the yen fell.

The figures include Toyota minivehicle unit Daihatsu Motor Co Ltd and truck unit Hino Motors Ltd , but the increase the higher target reflects entirely a boost in sales of Toyota brand vehicles, the company said.

Strong overseas sales and a weak yen had helped push Toyota to record profits in the business year ended in March.

Most automakers had assumed an average rate of 125 yen to the dollar for the year, but analysts project the average rate to come in at 120 yen if current levels continue for the rest of the year. On Monday, the yen was trading at 119.13 per dollar.

Even so, analysts have said Toyota, as well as rivals Honda Motor Co Ltd and Nissan Motor Co Ltd , is still on track to post record profits for the second consecutive business year in the 12 months to next March.

Toyota said on Monday that it did not intend to change its forecasts despite the recent weakening of the yen.

The auto giant also boosted its forecast for group global production by 280,000 units or 4.7 percent to 6.28 million units, compared with last year's result of 5.85 million units.

Its group domestic production forecast was lifted to 4.15 million units, an increase of 250,000 units or 6.4 percent. It compares with domestic production of 4.05 million units in 2001.

Toyota's group export forecast was boosted to 1.85 million units, an increase of 270,000. Last year Toyota's exports totalled 1.75 million units.

The auto giant also said it did not expect to see major losses on its stockholders despite the recent plunge in the stock market.

Toyota will announce its results for the first quarter of 2002/03 next month, while rival Honda will announce its quarterly results later on Monday.

Honda, Japan's second-largest automaker, is expected to post a record quarterly operating profit in April-June, boosted by brisk U.S. sales of light trucks and a weak yen for the period.

Shares in Toyota were up 1.09 percent at 2,790 yen at 0338 GMT, while shares in Honda were up 5.22 percent at 5,040 yen. The key Nikkei average was up 1.89 percent.