Friday, May 09, 2008

Honda to expand dealership in China

Honda Motor Co, Japan's second-largest automaker, will expand dealerships in China by 25% to 700 by the end of the year, as part of its efforts to boost its auto sales in the sizzling Chinese car market, a source citing insiders as saying.

The Tokyo-based carmaker now runs 560 locations in China through three dealer networks in China. Guangzhou Honda Auto Co, the biggest one, plans to increase its sites by 24% to 450 by the end-2008. And Dongfeng Honda Auto Co and franchised stores of the Acura-branded luxury sedan will have 230 and 20 outlets respectively by then, up 21% and 150% over 2007.

Meanwhile, the source said Honda will boost its annual output in China by 20% to 650,000 vehicles by the year end, from 530,000 units last year, and sales by 15% to 490,000 units.
For Dongfeng Honda alone, it will spend roughly US$ 100 million this year to extend its production lines for the Civic subcompact and the CR-V sport utility vehicle, doubling its annual capacity up to 240,000 units, the source said.

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