Guangqi Honda Automobile plans to build a third production line at its ZengCheng plant.

Construction will begin at the end of 2012 and the line will start production in 2014 with capacity of 120,000 units but this will double eventually.

GHAC is also planning a new engine plant to supply the third line. Total spend is about CNY3.56bn (US$561.7m).

The third line will take GHAC’s capacity to 600,000 units, expandable to 720,000. In the meantime, Dongfeng Honda Automobile, another Honda car production and sales joint venture in China, is scheduled to begin production at its newly built second plant in July 2012, increasing annual production there to 360,000 units by 2013. Honda’s overall annual automobile capacity in China will increase from the current 770,000 units to 1.01m units in 2014.

Honda will further localise its R&D capabilities in the country.