Honda to raise local content rate in China to 90 pct

Honda Motor Co Ltd plans to boost its local procurement rate for parts and components in China to 90 pct from the current 70 pct by the end of 2008 in a bid to reduce costs, the Nikkei reported, without citing sources.

The carmaker aims to step up local purchasing in time for the start of production of a new model of its flagship Accord next year, the business daily said.

In addition to hiking the procurement rate from the initially planned level of 80 pct, Honda also moved up the target date by several years, the Nikkei said.