SINO-JANANESE auto maker Dongfeng Honda plans to double its annual production capacity from its current 120,000 units to 240,000 units within five years.
Dongfeng Honda Automobile Co Ltd, a joint venture between China's Dongfeng Motor Corp and Japan's Honda Motor Co, produces 620 units every day, above the designed capacity of 500 units, said Liu Yuhe, deputy general manager of the joint venture.
During the previous three years, the joint venture posted a more than 10-percent growth rate annually, Liu said, adding the sales for this year were expected to reach 152,000 units, against 127,000 last year.
The second factory has begun construction in the central China's city of Wuhan in Hubei Province and will start operation this year. When completed, it is expected to bring the company's output to 168,000 units at the end of this year, almost a 40-percent increase on last year.
Wuhan-based Dongfeng Honda was founded in July 2003, with a registered capital of US$200 million. It began producing Honda CR-V sport utility vehicles in April 2004 for the Chinese market.
Hong Kong-listed Dongfeng Motor Group and Honda each owns 50 percent of the joint venture.
Dongfeng Motor, China's third-largest automotive group after Shanghai Automotive Industry Corp and Changchun First Automotive Works, also runs joint ventures with Japan's Nissan and French car maker PSA Peugeot Citroen.