Honda Plans to Build a New Manufacturing Plant in China

China: Honda is set to build a new manufacturing factory in Wuhan, China, as it plans to expand its reachness all over the world to rank among the largest vehicle companies. The company has already three plants located in southern Guangzhou, a plant dedicated for exports mainly to Russia, Middle East and Africa and two plants in Wuhan, China.

The company is likely to start its operations by 2019, wherein, the new plant is expected to produce 120,000 vehicles annually during the initial phase. In the coming years, the company is also planning to increase the production capacity to 240,000 vehicles as compared to the company’s ongoing China factory capacity of existing 1.08 million units, excluding exports.

TechSci Research believes that the new plant established by Honda in China, would give the company an access to a huge customer base present across the country. Eventually, the step taken by the company would generate an emerging demand for tires, in the OEM segment of the market, which would influence the overall tire industry of China in coming period.

According to a recent report published by TechSci Research, “China Tyre Market Forecast & Opportunities, 2020”, during the last decade, China emerged as one of the leading economies worldwide in terms of GDP growth. The country has grown manifold and emerged as the leading manufacturing hub across the globe. With a population of over 1.35 billion, China witnessed multifaceted development within various industries for the past few years. The automotive industry, in particular, has grown at a tremendous pace owing to diverse factors such as increasing disposable income, rising standard of living and automobile export demand.