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Honda new car plant in China 2019 start planning sources.
A flag flies outside with the company logo of Honda Motor Co plant in Yorii, Saitama Prefecture, Japan, March 8, 2016 REUTERS Thomas Peter.
TOKYO Reuters - Honda Motor Co 7267 T plans to build a new plant in China that will produce passenger cars in 2019, increasing its production capacity in the country by about a fifth, two people familiar with the matter said Tuesday.
Honda and Dongfeng Motor Group Co partner experiencing explosive growth in China with sales of their joint venture soared 48 percent for the year to date thanks to the popularity of the sport utility vehicle and XR-V sedan Civic recently launched.
At the same time, the company, Dongfeng Honda, comes close to its capacity limits at its two plants, targeting vehicle sales for 2016 450.000 - near the current annual capacity of 480,000.
The new plant will be located in Wuhan, central China, a hub of major auto It will initially produce 120,000 cars a year, with capacity eventually likely to double, the sources said, declining to identify because there was no been an official announcement by the companies.
Honda has confirmed that he discussed the additional plant in Wuhan with Dongfeng, but he had nothing official to announce today a spokesman for Beijing-based Honda said the project had yet to be formally approved by the company or the government.
The plan was first reported by the Nikkei business daily, which said the business plan to spend hundreds of millions of dollars in the factory.
The new plant would be the seventh Honda Honda in China also has a joint venture with GAC group called Guangqi Honda has three plants The Japanese automaker also has a separate facility for exports.
Honda said in April he sought to boost car sales in China to 1 07 million cars this year he sold 1 01 million vehicles in 2015, a jump of 33 percent compared to the previous year.
Auto sales in China have increased in September for a fifth consecutive month, rising to three and a half year high.
Statement by Maki Shiraki in TOKYO; Additional reporting by Chang-Ran Kim in TOKYO and Norihiko Shirouzu and Jake spring in BEIJING; Editing by Edwina Gibbs.
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