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Honda to build new plant, add 20 percent capacity in China

TOKYO – Honda Motor Co. plans to build its third production plant in Wuhan, Hubei Province to increase its vehicle output capacity in the country by 20 percent, according to a Nihon Keizai Shimbun report.

For Honda, the scale of Chinese new vehicle market will reach about 30 million units by 2019, equivalent to about six times that of the Japanese market.

Honda already has five large-scale factories in Guangzhou and Wuhan. The total capacity in the Guangzhou factories stands at 600,000 units and the two in Wuhan have a combined capacity of 480,000 units. The new factory in Wuhan would give the Japanese automaker a total capacity of 1.3 million units.

In China, new vehicle sales reached 19.36 million units through to September this year, up 13 percent from a year earlier, about four times that of the Japanese market.

Honda’s current capacity of 1.08 million units in China is about the same as its Japanese domestic capacity. It sold 872,104 vehicles in China in the first nine months of this year, up 25.5 percent.

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