Honda has delayed its plans to build a manufacturing plant with joint venture partner Dongfeng Motor in Wuhan amid sluggish demand.

Dongfeng Honda Automobile VP Chen Binbo said the JV had planned to start construction in 2015. Now, the company intends to start work on the plant around 2017. A final decision is expected by the end of 2015.

The Wuhan plant is expected to cost CNY5.2bn (US$817m) for annual capacity of 240,000 units. The company plans to manufacture EVs, sedans and SUVs at the factory, Bloomberg reported.