A joint venture between Honda Motor Co Ltd and Guangzhou Automobile Group Co has begun construction of a 3.49 billion yuan ($522 million) electric vehicle production facility in Guangdong province.
The electric vehicle factory is targeted to start production in 2024 with an annual capacity of 120,000 units.
The factory is projected to support Honda to compete in the electric vehicle market in China with various manufacturers both from China and abroad such as Tesla and Volkswagen. The Chinese market itself is the largest market for electric vehicles.
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Honda said another electric vehicle production facility in China, in a joint venture with Dongfeng Motor Group, is also expected to start operating in 2024.
Honda is targeting annual car production capacity in China to increase by about 16 percent to 1.73 million units in two years.
