Honda to boost China plant capacity by 20%

Honda Motor Co. will boost its annual output capacity in China by about 20% to 650,000 vehicles, aiming for a larger share of the fast-growing market, the Nikkei Business Daily said. Honda, Japan’s No.2 carmaker, currently manufactures some 530,000 vehicles a year at two Chinese joint ventures, Guangzhou Honda Automobile Co. and Dongfeng Honda Automobile Co. Dongfeng Honda will double its capacity to 240,000 units as early as this year, investing some ¥10 billion (US$96.29 million) to add production lines at an existing plant, the paper said. A Honda spokeswoman said the company was studying the issue of expanding production at Dongfeng, but nothing had been decided. She said the company planned to expand its dealerships in China up to 700 by the end of this year, from the current 500 and hoped to sell roughly 490,000 units in China in 2008, up 15% from 2007. (May 8, 2008)