Honda will build a third assembly plant in China with DFM
- Honda will revive with Dongfeng (DFM) its project to build a third Chinese car assembly plant.
The project was first announced in July 2013 but frozen in December 2014 due to forecasted sales in the Chinese market downgraded. But since this freezing time the Joint Venture Dongfeng-Honda launched new models and consequently sales rose significantly (+ 24% in 2015 and + 25% in first half 2016).
The project was first announced in July 2013 but frozen in December 2014 due to forecasted sales in the Chinese market downgraded. But since this freezing time the Joint Venture Dongfeng-Honda launched new models and consequently sales rose significantly (+ 24% in 2015 and + 25% in first half 2016).
- The new plant will be built in 2017 alongside the first two ones, in Wuhan (Hebei Province) and will start its activity in 2018.
- It will have a production capacity of 240 000 vehicles per year, which will be added to the 480,000 units produced in 2015 in the other two factories in Wuhan. These two plants currently produce the CRV, Civic, Stream, Spirior, Elysion, Jade.
- It is to be noted that Honda has another partnership, this time with the Chinese manufacturer GAC, which has three factories of 240 000 vehicles capacity each. These three plants located in Guangzhou, currently produce the Accord, Odyssey, City, Jazz, and Crosstour Crider (560,000 vehicles produced in 2015).
- In total, therefore, Honda capacity in China is 1.2 million vehicles in China in 2016 and will reach 1.44 million units in 2018. Honda for the first time sold more than one million vehicles in China in 2016.
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