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Dongfeng-Honda breaks ground for third plant in China

WUHAN, Hubei – Dongfeng-Honda Automobile Co., Ltd. broke ground for its third production plant in Wuhan on December 8 to meet increasing demand in China, parent company Honda Motor Co., Ltd. said in a statement.

The third plant will be built on a 1.2 million-square-meter plot acquired by the joint venture, located approximately 8 km southeast of the company’s first plant within Wuhan Economic & Technological Development District. With an investment of approximately ¥3 billion ($441 million), the new plant is scheduled to become operational in the first half of 2019, with annual production capacity of 120,000 units. The new plant will be designed with a concept to accommodate production of electric vehicles.

The addition of the third plant will increase Dongfeng-Honda’s overall annual production capacity to 600,000 units, which will increase Honda’s overall automobile production capacity in China to 1.25 million units, including 600,000 units at GAC-Honda and 50,000 units at Honda Automobile (China) Co., Ltd., an export automobile production plant.

“Honda sales in China are going strong and annual unit sales for 2016 are expected to reach 1.2 million units. The Chinese market has potential for further development and growth. In order to continue meeting such strong demand, Honda will introduce its highly attractive products equipped with leading-edge technologies to the Chinese market ahead of other markets around the world and deliver joys to our customers here in China,” said Takahiro Hachigo, president & CEO of Honda.

Dongfeng-Honda’s total sales for 2016 are expected to exceed 560,000 units.

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