Honda Motor hopes to develop car battery in China

Shanghai, May 25 (Gasgoo.com) Honda Motor has said that it hopes to develop car battery technology in China, which may overtake the U.S. to become the company's largest market in the next decade, Reuters reported today.

China has resources, technology and other advantages for battery development, and Honda needs low-cost and high-efficiency battery products from the country, said Chief Executive Takanobu Ito in southern China today.

"If there is a suitable chance, Honda hopes to develop the battery business in China," Ito told reporters, after announcing a plan to boost capacity by a third at Guangqi Honda, a joint venture between Guanzghou Auto and Honda Motor.

"There needs to be a major breakthrough in battery technology," he said, adding that Honda will focus on hybrids and more fuel-efficient vehicles for the near term as electric cars are unlikely to become a mainstream product in the next 10-20 years.

Last year, Honda sold about 580,000 vehicles in China, a booming market which has been increasingly important for Japan's No. 2 automaker. The company's sales in the U.S. market came to about 1.2 million units in 2009.

"Honda's sales in China probably cannot surpass the United States in the next five years," Ito said. "But after 10 years, it may become the company's largest single market."