Saturday, May 24, 2008

Honda to boost production capacity in China venture

Honda Motor Co, Japan's second-largest automaker, plans to boost its production capacity of its Chinese ventures by 20% to 650,000 units in a bid to acquire a larger market share in the fast-growing economy.

It plans to invest US$95.55 billion in its joint venture with Dongfeng Motor Group to add more production lines. The capacity is expected to be raised to 240,000 by the end of this year at the earliest.

It also has plans to expand dealerships in China by 25% from the current 560 to 700 by the end of the year, in a bid to boost its auto sales. Honda expects its sales in China to rise 15% to 490,000 vehicles this year.

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