Honda to expand production by 36% in China by 2012
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Honda Motor President and Chief Executive Officer Takanobu Ito said Tuesday the company plans to increase its manufacturing capacity in China by 36 percent by 2012, in a move that will expand the presence of Japan's second-largest automaker in the world's biggest auto market.
The move will raise Honda's production capacity in China to 830,000 vehicles by the end of 2012.
A factory operated by Guangqi Honda Automobile Co., a joint venture with Guangzhou Automobile Group Co., will double its capacity to 240,000 units by 2011.
A new factory operated by Dongfeng Honda Automobile Co, another joint venture, will begin operations soon.
"Honda's move will help it grab a bigger market share and develop in China," said President of Guangzhou Automobile Group Co. Zhang Fangyou.
Honda plans to introduce three hybrid car models into China over the next three years.
The auto maker, which currently can produce 610,000 vehicles in China, reported annual sales of 576,223 units last year, up 22.5 percent year on year.
