Honda in Guangzhou (Canton) China Aims For 90% Rise in Sales

HONG KONG, Jan 3, 2003; Reuters reported that Guangzhou Honda Automotive Co Ltd, a China joint venture between Japan's second-largest automaker Honda Motor Co and Denway Motors, is aiming for a 90 percent year-on-year increase in volume sales in 2003.

According to Guangzhou Honda's Web site, the joint venture has set a target to sell 110,000 vehicles, including cars and minivans, this year.

Revenue from the factory in the southern Chinese city of Guangzhou is expected to surge 50 percent from last year to 20.6 billion yuan in 2003, said Guangzhou Honda, which has more than doubled its annual production capacity to 120,000 vehicles.

Foreign carmakers are pouring money into China, the world's fastest growing auto market.

Annual car sales in China jumped 55 percent in 2002 to top the one million mark for the first time, as steady economic growth of about eight percent and the launch of cheaper models put more vehicles within the reach of Chinese families.