Honda to build new plant in China

TOKYO 21st December; Japan Today reported that Honda Motor Co plans to build a new passenger car plant in China to increase production in the rapidly growing market, sources familiar with the matter said Sunday. The plant in Wuhan, Hubei Province, is scheduled to start operations in 2011 at the earliest with an annual output capacity of more than 100,000 cars, becoming the Japanese automaker’s fifth four-wheeled vehicle plant in China, the sources said.

With the start of operations at the plant, Honda’s overall production capacity in China will top 700,000 units, up 20% from the current level, they said. Japanese automakers are expanding production in China, which is certain to become the world’s largest auto market this year in terms of sales volume, topping the United States.