China Knowledge reported that Guangzhou Honda Automobile Co Ltd, Honda joint venture with Guangzhou Automobile Group Corp plans to set up at third production line in its Zengcheng factory and will be used to produce small displacement vehicles including the newest Honda Concept C models.

The new production line will start construction by the end of 2012 and put into production in 2014 which will have an annual output capacity of 240,000 vehicles. At the same time, the JV will set up its first engine plant as well to match the new production line, the investment for these two projects totaled about CNY 3.56 billion.

From January to April 2012, Guangzhou Honda Automobile saw its auto sales decreased 3.3% YoY to 111,700 vehicles including 40,300 vehicles of Honda Accord and 10,700 vehicles of Honda Fit.

Source - China Knowledge

(www.steelguru.com)