Honda Motor Company said on Thursday that its Dongfeng Honda Automobile joint venture in China will build a third production facility at a cost of 3 billion yuan ($436 million) to meet rising demand in the world’s second biggest economy.
The plant, which is designed to accommodate production of electric cars as well, is scheduled to begin making automobiles in the first half of 2019, the company said on its website. The annual capacity of the facility near Wuhan, will be 120,000 units.
The addition of the third plant will increase Dongfeng Honda’s annual production capacity to 600,000 units. Honda’s total Chinese production limit will rise to 1.25 million units, including the 600,000 capacity of Guangqi Honda and 50,000 units made per year by Honda Automobile China Co, which makes cars for exports.