Honda to spend RM1.68b on new plant in China
TOKYO, April 23 — Honda Motor Co said today it will spend 46 billion yen (RM1,680 million) to build a new car and a new engine plant in China, boosting its annual production by 25 per cent.
Guangqi Honda Automobile Co, a Chinese joint venture with Honda, plans to boost annual production to 600,000 vehicles in 2014 from the current 480,000, Honda said.
Honda Motor earlier this month said it will launch 10 new car models in China between now and 2015 and expects that by 2015 its annual China sales will be double those recorded in 2011.
"Details on models are yet to be set. We said earlier that we will be doubling our annual sales in China. Since we are producing 480,000 units now, our current (production) capacity is too small," said a Honda spokeswoman.
The Japanese automaker said it plans to start construction of the plants by the end of this year and aims to have them operational in 2014.
The car assembly plant will have an initial annual production capacity of 120,000 vehicles, that will later be raised to 240,000 vehicles, Honda said. — Reuters