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January 21, 2010

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Home » Business » Auto

Honda JV invests in new plant

HONDA Motor Corp's Chinese joint venture will invest 1.15 billion yuan (US$168 million) in a new plant with a designed production capacity of 240,000 vehicles as it drives to meet surging demand in the world's largest auto market.

The new plant, a second facility for Honda and partner Dongfeng Motor Corp, is located in Wuhan in central China's Hubei Province. It will produce 60,000 vehicles when it starts operations in the second half of 2012, boosting Honda's total output capacity in China to 660,000 units by 2012.

The Japanese auto maker has two other plants and another joint venture in the country.

Established in 2003, Dongfeng Honda's sales have seen fast growth due to its popular CR-V sport utility vehicle and Civic sedan. Its sales rose 28.2 percent to 210,600 units last year. The car maker targets to sell 240,200 cars this year.

Dongfeng Honda will also upgrade assembly lines to boost output of its existing plants by 25 percent to 240,000 units.

Honda has another partner, Guangzhou Automobile Group Co in China, which makes Accord, Odyssey, City and Fit models.

Car makers in China ramped up production after vehicle sales accelerated more than 40 percent last year. Vehicle sales for this year are expected at 15 million units on rising income.

Nissan Motor Corp's Chinese venture is also considering building a new plant to produce 300,000 vehicles a year, media reports said.


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