Dongfeng Honda to double output by 2009

Chinas Dongfeng Honda Automobile Co., the joint venture between Japans Honda Motor Co. and China’s Dongfeng Motor Corp., will boost its annual capacity from 120,000 units at present to 240,000 by next year, Honda’s chief operating officer for Chinese operations said. The planned increase will cover such models as the Civic compact and the CR-V sport utility vehicle. Sales at Dongfeng Honda are projected to climb to 150,000 vehicles in 2008, up about 20% on the year. Concerning the outlook for automobile demand in China following the Beijing Summer Olympics, Atsuyoshi Hyogo said, “given that parking lots and other infrastructure are still underdeveloped, some form of adjustment is expected.” He added, however, “The market remains on the growth track and will likely expand about 15% annually after the Olympics.” As for the China-only brand that Guangzhou Honda Automobile Co. — another Honda joint venture — will roll out in around 2010, Hyogo noted, “products priced lower than the Honda brand will be produced to appeal to the new segment of car buyers.” (May 23, 2008)