Honda to build new factory in China for compact cars
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[TOKYO] Honda Motor Co will build a new factory in Wuhan, China, that would begin producing compact cars in spring 2019, boosting its output capacity in the country by about a fifth, the Nikkei business daily said on Tuesday.
Japan's third-largest automaker by sales will spend "hundreds of millions of dollars" on the plant, which will start with capacity of 120,000 cars a year and gradually double in line with demand, the paper said.
The factory will be operated in a joint venture with local partner Dongfeng Motor Group Co, the Nikkei said.
Media representatives at Honda were not immediately available to comment.
China introduced a tax break a year ago that effectively shaves US$1,000 off the price of passenger cars with engines of up to 1.6 litres, the Nikkei said.
REUTERS
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