More Honda Expansion in China

10 November 2004

Guangzhou Honda Automobile Co.(GHAC), a joint venture between Honda and Guangzhou Auto Group, is building a new plant with an annual capacity of 120,000 units, due to be operational in the latter half of 2006.

After its start in 1999 with an annual capacity of 30,000 units, GHAC has grown steadily with the growth of the Chinese market to an annual  capacity of 240,000 units. To support the combined 360,000 unit output from the two plants, Honda is also expanding engine production at another of its Chinese joint ventures.

Honda earlier announced plans to expand the production capacity of Dongfeng Honda Automobile (Wuhan)  (WDHAC). (Earlier post.) Furthermore, Honda Automobile (China) Co., Honda’s joint venture with Guangzhou Auto Group and Dongfeng Motor, is currently building a new auto plant dedicated exclusively for export.

All these developments will almost double Honda’s total annual capacity in China to 530,000 units in 2006.

Guangzhou Honda builds the Accord, Odyssey, Fit Saloon and Fit models. As with Dongfeng Honda and the Civic, it will be interesting to see if Accord hybrids emerge from this plant for the Chinese market.