By Gong Zhengzheng (China Daily)
Updated: 2007-07-20 10:10

Atsuyoshi Hyogo, Honda's China chief, said the Japanese carmaker will "completely" back the venture's self-development endeavor by providing technical and talent assistance.

"However, creation of a new brand is an unprecedented challenge for the venture," Hyogo said.

Sales of Guangzhou Honda, which started production in 1998, climbed by 7.8 percent year-on-year to 133,173 vehicles in the first half of this year, ranking it No 6 in China's passenger car sector. It aims to sell a total of 310,000 units this year, up from 260,000 units last year.

The venture, one of the most profitable carmakers in China, posted more than 5 billion yuan in 2006 profits.

Eighty-five percent of spare parts for its current models are locally made.

Honda also has a tie-up with Dongfeng Motor Corp in the central city of Wuhan, producing the compact Civic and CR-V sport utility vehicle.

Overall passenger car sales in China, the world's second-biggest vehicle market, jumped 26 percent to 2.55 million units from January to June, according to industry data.

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