Honda and JV partner to expand engine and vehicle production in China

  • 12-Jun-2013 11:07 EDT

The new line is scheduled to become operational in 2015, with an initial annual production capacity of 120,000 units.

Guangqi Honda Automobile Co., Ltd. (GHAC), a Chinese automobile production and sales joint venture between Honda of Japan and Guangzhou Automobile Group Co. of China, recently commemorated the start of construction of a third vehicle production line and an engine plant within the borders of the existing ZengCheng Plant in Guangzhou, Guangdong province. The new line will feature a 10,000-kW-capacity solar-power-generation system, the largest among automakers in China, according to the JV. Among the other advanced technologies to be employed is laser welding. The new line is scheduled to become operational in 2015, with an initial annual production capacity of 120,000 units expandable to 240,000 units. When the third line becomes operational in 2015, GHAC's overall annual automobile production capacity in China will have increased from the current 480,000 to 600,000 units, while Honda's will have increased from the current 870,000 to 1.01 million units. Honda also has a joint venture with Dongfeng. The total investment for the third line and the new engine plant is about 3.56 billion RMB(about 59.3 billion yen).

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