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Dongfeng Honda to construct third automobile production facility in China

Published 12 December 2016

Dongfeng Honda Automobile a Honda automobile production and sales joint venture in China, has unveiled plans to build a third automobile production plant.

The announcement included a groundbreaking event in Wuhan, China. The event was attended by representatives from the governments of Wuhan, Hubei Province, Dongfeng Motor Group chairman Zhu YanFeng, as well as Honda Motor president, CEO & representative director Takahiro Hachigo, Honda Motor Regional Operations (China) COO Yasuhide Mizuno.

Dongfeng Honda plans to build the third plant on a 1.2 million-square-meter plot acquired by the company, located approximately 8 km southeast of the company’s first plant within Wuhan Economic & Technological Development District.

With an investment of approximately R.M.B 3bn ($430m) the new plant is scheduled to become operational in the first half of 2019, with annual production capacity of 120,000 units.

Moreover, this new plant will be designed with a concept to accommodate production of electrified automobiles, where demand is expected to expand in the coming years in the automobile market in China.

Since it began production and sales of CR-V in April 2004, Dongfeng Honda has continued enhancing its product lineup, including the Civic, since 2006, and the XR-V compact SUV, since 2015.

With the introduction of the all-new Civic and GIENIA compact hatchback, Dongfeng Honda’s total sales for 2016 is expected to exceed 560,000 units.

The addition of the third plant will increase Dongfeng Honda’s overall annual production capacity to 600,000 units, which will increase Honda’s overall automobile production capacity in China to 1.25 million units, including 600,000 units of Guangqi Honda and 50,000 units of Honda Automobile (China) an export automobile production plant.

Honda Motor president, CEO and representative director Takahiro Hachigo said: “Honda sales in China is going strong and annual unit sales for 2016 is expected to reach 1.2 million units."

"The Chinese market has potential for further development and growth. In order to continue meeting such strong demand, Honda will introduce its highly attractive products equipped with leading-edge technologies to the Chinese market ahead of other markets around the world and deliver joys to our customers here in China.”

Source: Company Press Release