WUHAN, Hubei – Dongfeng-Honda’s third plant in Wuhan, Hubei Province has been approved by Hubei Provincial Development and Reform Commission, according to a report on auto.souhu.com.
With a total investment of ¥5.2 billion ($867 million), the plant will be built in two phases and capable of producing 240,000 vehicles per year, according to information published by the local government.
Three all-new models including a B-class SUV, a B-class sedan and a B-class hatchback, as well as an FMC Ciimo and a battery electric vehicle developed independently are expected to be manufactured at the new plant.
Chinese Dongfeng Motor Group Co., Ltd. (DFG), Japan’s Honda Motor Co., Ltd. and Honda Motor (China) Investment Co., Ltd. own 50, 40 and 10 percent stakes of the plant respectively.
Built in 2004, the first plant of Dongfeng-Honda, a joint venture between DFG and Honda, has an output capacity of 240,000 vehicles and focuses on production of the CR-V, Spirior, Elysion and Civic models.
The joint venture’s second plant opened in 2012 is capable of producing 240,000 units of the XR-V, Civic, Jade and Ciimo vehicles annually. When the third plant is in place, Dongfeng-Honda’s total output capacity will reach 720,000 vehicles per year.
Dongfeng-Honda’s sales target last year was set at 350,000 vehicles, and the JV plans to exceed 500,000 units in sales this year.