Honda to raise China annual capacity by 16.7%

Honda Motor Co. plans to raise its annual production capacity in China by 16.7% to 560,000 units by the end of this year, a spokesman said Thursday.

The Japanese auto maker and one of its Chinese joint venture partners, Dongfeng Motor Corp., plan to add 80,000 units a year in capacity by modifying a production line at their plant in Hubei province, spokesman Fujii Takayuki said.

The plant currently has an annual capacity of 120,000 units, he said.

Honda also produces vehicles with Guangzhou Automobile Group Co. Their joint venture can produce 360,000 vehicles a year.

Honda and Dongfeng Motor will use the increased capacity mainly to produce the CRV sport-utility vehicle, Takayuki said. Sales of CRVs in China rose 24.4% in the first half this year from a year earlier to 48,592 units.

Honda and its joint-venture partners also plan to increase the number of their dealerships in China from 663 now to 730 by the end of the year.

Honda has separate dealerships for its high-end Acura brand.