Honda opens 7th assembly plant amid market share gains

Automotive News China

Automotive News | 2019-4-16

Honda Motor Co. launched output at a new assembly plant in the central China city of Wuhan, easing a bottleneck in production as the automaker continues to gain market share in the country. 

The 3 billion yuan ($448 million) factory is Honda¡¯s seventh in China. It is the third plant the Japanese automaker operates with local partner Dongfeng Motor Group. 

The factory opened last week and can initially build 120,000 vehicles a year, raising annual production capacity under its partnership with Dongfeng to 600,000 vehicles and lifting Honda¡¯s total capacity in China to 1.25 million, the company said. 

Honda¡¯s joint venture with Guangzhou Automobile Co., located in the south China city of Guangzhou, also operates three plants which combined can produce 600,000 vehicles at full capacity.

Honda also has a wholly-owned manufacturing plant in Guangzhou, which can build up to 50,000 vehicles a year for exports.  

Honda is one of the few foreign automakers that have achieved sales growth in China this year.

In the first quarter, the Japanese brand¡¯s China deliveries rose 11 percent to 335,134, with Dongfeng Honda generating deliveries of 180,810 while GAC Honda contributed 154,324. 

In 2018, Honda¡¯s China sales topped 1.4 million, virtually unchanged from 2017. During the year, Dongfeng Honda delivered roughly 697,000 while GAC Honda sold about 735,000. 

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