Honda reportedly is planning to boost its production capacity in China by about 20% to 650,000 vehicles a year to secure a larger share of the domestic market.

The carmaker will invest about JPY10bn (US$95.8m) to add production lines at a Dongfeng Honda factory to double capacity to 240,000 units as early as this year, the Associated Press said, citing the Nikkei business daily and Thomson Financial.

Honda curently makes about 530,000 vehicles a year through two local joint ventures, Guangzhou Honda Automobile and Dongfeng Honda Automobile.

The report said that Honda, which currently has three sales networks with a total of 560 dealers across China, also plans to add another 140 outlets by the end of this year  and hopes to sell roughly 490,000 vehicles in China this year, up 15% from 2007.

Honda intends to increase the number of stores selling Acura from eight to 20, the Nikkei said.