120,000-unit Dongfeng Honda project operational

With a white CR-V car going out of an assembly line, a project with an annual output capacity of 120,000 passenger cars has been operational at Dongfeng Honda Automobile (Wuhan) Co., Ltd.

It is learned that with an investment of 2.8 billion yuan (about 350 million US dollars), the building of the project is based on the original annual output capability of 30,000 vehicles.

Dongfeng Honda., a joint venture between Dongfeng and Honda, launched the project in January 24, 2005.

Founded in July 2003, the company has mainly turned out model SUV vehicles. Since putting on sale its first-generation model CR-V in May 2004, the company had sold 26,244 cars in 2005 with market share increased from 6.7 per cent in 2004 to 13 per cent in 2005.

It is reported that the joint venture will add Civic compact models to the market in the coming April.

Sixty-five per cent of Dongfeng-Honda vehicles are domestically made and the next year's goal will be 75 per cent while five key engine parts have been already localized.

By People's Daily Online