Honda opens its seventh assembly plant in China
- Like VW or Toyota, Honda is one of the manufacturers that has managed to remain stable on the Chinese market despite the sharp decline over the past ten months. The Japanese manufacturer increased its sales by 10.7% in the first quarter of 2019, while at the same time, the Chinese passenger car market declined by 13.8%. Already, in 2018, Honda sales increased by 2.5% (to 1.475 million vehicles) in a Chinese passenger car market that was down by 4.1%.
- Honda therefore needs new capacity to meet demand, unlike other automakers who have decided to reduce their capacity in the country due to lackluster sales. That's why Honda has built a new factory in China, located in Wuhan, the industrial centre of the Chinese manufacturer Dongfeng.
- Honda currently has two partners in China (GAC and Dongfeng)., Honda previously had three plants with GAC and two plants with Dongfeng. A sixth plant located in Guangzhou is 100% owned by Honda. It manufactures and exports the Honda Jazz, particularly to Europe (about 50,000 units per year).
- The seventh Honda plant in China has just started operating (this is the third plant in partnership with Dongfeng). It will initially be able to produce 120,000 vehicles per year, then 240,000 per year. No information concerning the model names has been provided by the manufacturer. The Wuhan region is one of the most industrialized regions in China, with Honda, PSA, Nissan and Renault plants already operating in the region, for a volume of more than one million vehicles in 2018.
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