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Honda builds new plant to keep up with demand

Dongfeng Honda Automobile, a joint venture between Honda and Dongfeng Motor Group, will build a new US$169 million production facility in Wuhan, Hubei province, in order to keep up with growing demand, the Wall Street Journal reported. The one million square meter plant will be Honda’s fifth in China, having a similar joint venture arrangement with Guangzhou Automobile Industry Group. The Japanese car maker said it sold 580,000 cars through its two joint ventures in 2009, an increase of 23% from the previous year. Total mainland auto sales grew 46% year-on-year to 13.6 million units. Honda Chief Executive Takanobu Ito he expects overall Honda sales in China this year to grow to more than 630,000 vehicles, an increase of about 10% from 2009.

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