Top Biz News

Honda backs local development drive

By Yu Qiao (China Daily)
Updated: 2006-09-20 09:48

According to Fu Shoujie, executive vice-president of Guangzhou Honda, the venture plans to launch at least one new model annually over the next few years.

Fu said the venture would use more locally made spare parts in its vehicles to cut costs.

At present, more than 80 per cent of the spare parts used in the venture's cars are made in China, up from 40 per cent in 1999.

Honda runs another joint venture with Dongfeng Motor Corp China's third-biggest vehicle producer in Wuhan, the capital of Hubei Province. The venture assembles Honda's CR-V sport utility vehicle and Civic compact sedan.

Sources from Honda Motor (China) Investment Co Ltd said the Japanese carmaker's overall sales in China climbed by 17 per cent year-on-year to 194,000 vehicles from January to August this year. The nation is now Honda's third-biggest single market in the world after the United States and Japan.

Honda aims to boost sales to 353,000 units in 2006 from 260,000 units last year.

According to industry data, sales of made-in-China vehicles jumped by 25 per cent to 4.53 million units in the first eight months of the year, including 3.23 million passenger cars.

Full-year sales are forecast to exceed 7 million units.