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Japanese firms plan to step up output

Two Japanese motor manufacturers have decided to increase production at their Chinese joint ventures. Honda announced that Guangzhou Honda Automobile plans to produce 59,000 vehicles this year. The 50- 50 joint venture with Guangzhou Auto Group produced 51,153 vehicles last year. The Odyssey minivan, which went into production in April, will account for most of the increased output. The venture’s most important model, however, is the Accord sedan which, according to Honda, holds 35 per cent of the luxury car market in China.

Toyota Motor said that the production of small cars in China would form an important part of its drive to expand its global market share from 10 to 15 per cent, the Financial Times reported. Production of new models is expected to start in the autumn and the company’s car-making joint venture will produce 30,000 units a year.

Meanwhile, Nissan Motor has increased its stake in a commercial vehicle joint venture with Dongfeng Automobile from 5 per cent to 30 per cent. Zhengzhou Nissan Automobile, based in Henan province, produces a Dongfeng pick-up truck, Nissan’s Datsun truck and other vehicles. Nissan acquired its increased stake from a Thai company.

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