An executive with Dongfeng Honda Automobile (Wuhan) Co., Ltd., a Sino-Japanese joint venture between Dongfeng and Honda, said the car maker was hoping to raise the proportion of locally-made key vehicle components from the current 65 percent to 75 percent next year.

In an interview with Xinhua, Liu Yuhe, deputy managing general manager of the Sino-Japanese joint venture, said an expansion calculated to boost the joint venture's annual capacity from 30,000 vehicles to 120,000 had been completed.

"Completion of the expansion enables us to begin production of new models next year as scheduled, including the Civic compact series," said Liu.

The expansion, which cost 2.8 billion yuan (about US$345 million), means that the joint venture's factory floor space has been expanded from 50,000 sq m to 181,000 sq m.

The expansion plan has also led to improvements in plant layout. State-of-the art paint shops and punch shops have been added, as well as new resin shaping processes and engine component technologies. A research and development center has also been set up.

The new equipment is being quickly installed in the newly completed factory building.

Dongfeng Honda Automobile Co. Ltd was founded in Wuhan, capital of central China's Hubei Province, in July 2003, with a registered capital of 98 million U.S. dollars.

Working procedures at the joint venture, which began producing Honda CR-V sport utility vehicles in April 2004, include welding, painting, engine production, assembly and testing of finished vehicles.

In the first half of this year, the market share of SUVs made by Dongfeng-Honda rose from 6.7 percent to 13.5 percent. Total sales of the joint venture are expected to reach 26,000 units this year.

He pledged that his company would also make great efforts to build and keep improving a marketing network featuring quality service.

According to Liu, the joint venture's exclusive sales dealerships across China will also increase from 80 this year to 140 next year.

Honda has another plant, based in Guangzhou, capital of south China's Guangdong Province, with an annual production capacity of 240,000 vehicles.

(Xinhua News Agency December 20, 2005)