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Honda to increase dealerships, capacity in China

(Agencies)
Updated: 2008-05-08 13:55

Honda Motor Co, Japan's second-largest automaker, will expand dealerships in China to 700 by the end of the year and boost annual output capacity there by about 20 percent to 650,000, Nikkei English News said.

A Honda car is showcased at an auto show in Shanghai in 2007. The Japan's second-largest automaker, will expand dealerships in China to 700 by the end of the year and boost annual output capacity there by about 20 percent to 650,000. [Asianewsphoto]

Guangzhou Honda Automobile Co, one of the Tokyo-based carmaker's three dealer networks in China, will increase its sites by 24 percent to 450, while Dongfeng Honda Automobile Co will have 230, up 21 percent, and stores selling the Acura luxury brand will rise from eight to 20, the news service said. The three networks currently have 560 locations.

Dongfeng Honda will raise annual capacity from the current 120,000 units to 240,000 as early as this year, Nikkei reported. It will invest about 10 billion yen ($95.2 million), adding production lines for the Civic subcompact and the CR-V sport utility vehicle at an existing plant, Nikkei said.

Honda has ability to make 530,000 vehicles a year in China and expects to sell about 490,000 units this year, 15 percent more than 2007, the news service said.