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Inadequate auto parts supply hampers Honda CR-V China output capacity

Shanghai. November 22 (Gasgoo.com) - Dongfeng Honda Automobile (Wuhan) Co, a joint venture between Dongfeng Auto and Honda Motors, now has difficulties raising output capacity of its popular SUV model CR-V model because of inadequate supply of imported auto parts, a company official said.

"Dongfeng Honda currently produces 13,000 vehicles a month: 5,000 Honda CR-V vehicles and 8,000 Honda Civic vehicles, but this output cannot meet market demand," said Liu Yuhe, deputy general manager of Dongfeng Honda. "We plan to increase production capacity to approximately 168,000 vehicles by the end of next year."

"There is definitely a shortage of supply of imported auto parts for assembling CRV vehicles here. The shortage has hampered our plan to increase production capacity," Liu continued, adding currently about 20 percent of CR-V vehicle components are sourced from Japan.

Dongfeng Honda's new CR-V has received a total volume of 40,000 vehicle orders over the past six months since the model was launched in April. The automaker has already delivered 30,000 vehicles to customers, but the remaining 10,000 will have to be delayed till the end of this year or early next year.

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