Guangqi Honda Automobile Co., Ltd. (GHAC), an automobile production and sales joint venture of Honda in China, has held a ceremony to commemorate the start of construction of a third production line and an engine plant within the existing ZengCheng Plant.
The third line is scheduled to become operational in 2015, with an initial annual production capacity of 120,000 units. GHAC is planning to further expand the capacity up to 240,000 units in the future. When the third line becomes operational in 2015, GHAC’s overall annual automobile production capacity will be increased from the current 480,000 units to 600,000 units, increasing Honda’s overall annual automobile production capacity in China from the current 870,000 units to 1.01 million units.
The total investment for the third line (with capacity expandable up to 240,000 units) and the new engine plant is expected to be approximately RMB 3.56 billion.