Honda R&D Co., a wholly owned unit of Honda Motor Co., on Wednesday announced establishing a subsidiary in the Chinese city of Shanghai in February.
The new Shanghai unit, Honda Motorcycle R&D China Co., will be capitalized at 17 million U.S. dollars and owned entirely by Honda R&D, the company said.
The new company will start operations in April next year, it added.
Honda estimates the Chinese motorcycle market, the world's largest, at 10 million units one year.