Honda may raise capacity in China with new plant

Honda Motor Co., Japan's second- largest automaker, is considering building a new passenger car factory in China to increase capacity, company spokeswoman Natsuno Asanuma said today, in response to a Nikkei newspaper report.

Honda's joint venture in China, Dongfeng Honda Automobile Co., will produce about 200,000 vehicles this year and Honda is considering expanding that to match rising demand, Asanuma said. The timeframe and size of a new factory haven't been decided, she said.

Honda will increase its capacity in China to 730,000 cars annually, Nikkei English News reported today. The initial investment may be 20 billion ($221 million) to 30 billion yen, according to the Nikkei report.