Honda Plans for 100 Extra Dealers in China

TULLAMARINE, AUSTRALIA – November 13, 2009: Honda Motor Co. has announced plans to launch 100 new car dealerships across China over the next five years to meet overwhelming demand.

There are currently 680 Honda dealers across the region, with immediate plans to add around 80 more to city centres and coastal areas before the end of the year, to satisfy strong demand for the Accord and City models.

Honda expects sales to increase by around 16 percent to 550,000 units this calendar year, with the forecast for the fiscal year ending March 2010 exceeded by 50,000 units.

Honda is currently at full production capacity in China and expects this to increase, following its all-time production record in the first half of the fiscal year.

Vehicle sales across China have been boosted by the introduction of nationwide tax cuts and subsidies as part of a wider government stimulus to help minimise the effects of the challenging economic climate.

China is widely tipped to replace the United States as the world’s largest auto market by the end of the year.