Honda to build new factory in China for compact cars
Honda Motor Co will be building a factory in Wuhan, China to produce compact cars from spring 2019, boosting output capacity in the country by about a fifth, the Nikkei business daily said on Tuesday. This would be company’s 7th factory in the global market.
Company will spend hundreds of millions of dollars on the plant which initially could manufacture 120,000 cars a year. Local partner Dongfeng Motor Group Co will jointly operate the planned factory.
In April Honda said it was looking to boost car sales in China. In 2015 it sold 1.01 million vehicles, an increase of 32.5 % from the previous 12 months.
Honda shares dipped 0.26 % in early trading compared with a smaller 0.13 % fall in the benchmark Nikkei 225 index.