Beijing
Honda starts making compact passenger cars in China
www.chinaview.cn 2003-09-16 13:36

¡@¡@TOKYO, Sept. 16 (Xinhuanet) -- Japanese carmaker Honda Motor Co. said it started producing 1.3-liter Fit Saloon compact passenger cars Tuesday at its joint venture, Guangzhou Honda Automobile Co. in China.

¡@¡@This is the first time that Honda manufactured compact cars at its fifty-fifty venture in the southern Chinese city of Guangzhou. ¡@¡@

¡@¡@Honda planned to have its combined output of vehicles in China this year to rise to 117,000, including the output of the Fit Saloons.

¡@¡@So far, the joint venture with China's Guangzhou Auto Group Corp. has produced Honda's larger passenger car, the Accord, as well as the Odyssey minivans.

¡@¡@Honda also planned to bolster its combined annual output of motor vehicles in China to 240,000 units by the end of 2004, the company said.

¡@¡@The second largest Japanese automaker aims to sell to the growing ranks of Chinese middle-class consumers, which the global motor industry hopes will act as an "engine" to power the auto boom in the vast market.

¡@¡@The introduction of the Fit Saloon will pit Honda against Volkswagen AG of Germany and Toyota Motor Corp. of Japan, which have taken preemptive steps to tap the Chinese market, local economic analysts said.

¡@¡@According to the analysts, the overall passenger car market in China is estimated at 1.8 million units in 2003, of which compact cars will likely account for a quarter at 490,000 units. Enditem 


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