Honda China (Part 2): Raising production to over 1.5 million units by 2020
Construction begins for Guangqi Honda and Dongfeng Honda expansions
This report describes the latest trends in the production efforts of Honda, which is actively strengthening its production capacity in China.
The production and sales of Honda's vehicles in China had favorably grown until 2010. However, Honda's sales were stagnant in 2011 and 2012 due to negative factors, including the company's delayed introduction of compact models (whose demand is growing in China), the decline in sales of the company's strategic vehicles (including the Accord), the 2011 great earthquake in Japan and the worsening political relations between Japan and China in 2012. In 2013, the company's production and sales rapidly recovered. Since then, Honda has been actively strengthening its production capacity to catch up with that of Nissan Motor Co., Ltd. and Toyota Motor Corporation, which are ahead of Honda.
Honda aims to expand its production capacity in China from 890,000 units as of September 2014 to over 1.5 million units in 2020 and to over 2 million units in 2023.
◇ Honda China (Part 1): Sales target of 1.3 million units in 2015 (Oct. 2014)
◇ Beijing Auto Show 2014:
(1) Honda unveils Hybrid Concept B and Acura RLX SH-AWD (May 2014)
(2) Honda: All-new Spirior concept, VEZEL and 3rd-generation Fit (May 2014)
◇ Honda's strategy to expand in Asia by developing cars for local markets (May 2014)
◇ Honda's China production increased to meet 2015 projections (May 2013)