Honda and Guangzhou Automobile Group are to set up production of Acura brand vehicles in China.

They have signed an agreement to begin discussing firm plans to start production at Guangqi Honda Automobile in 2016.

Guangqi Honda was established as a joint venture in 1998 for the production and sales of Honda products in China. Acura was first introduced - with the Legend saloon - in the US in 1986 and imports into China began in September 2006.

The range there now is six sedan and SUV models. From the start of sales in China, Acura has offered one of the best warranty plans among luxury vehicle brands available in China with four years or 100,000km of cover plus free maintenance service.

At this year’s Shanghai motor show, the Acura Concept SUV-X was exhibited, a preview of a small model developed primarily for China.