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China
May 28, 2013

Guangqi Honda Begins Construction of Third Automobile Production Line and a New Engine Plant

BEIJING, China, May 28, 2013 - Guangqi Honda Automobile Co., Ltd. (GHAC), an automobile production and sales joint venture of Honda in China, today held a ceremony to commemorate the start of construction of a third production line and an engine plant within the property of the existing ZengCheng Plant. The ceremony was attended by dignitaries, guests and representatives from the local governments of Guangzhou, Guangdong Province as well as Honda executives including Takanobu Ito, president & CEO; and Seiji Kuraishi, chief operating officer for regional operations in China.

Takanobu Ito, president, CEO and representative director of Honda Motor Co., Ltd.zoom
Takanobu Ito, president, CEO and representative director of Honda Motor Co., Ltd.

The third line will be an environmentally-responsible and energy-saving production line, including a solar power generation system with a 10,000 kilowatt-capacity, the largest*1 capacity solar power generation system installed by an automaker in China. The line also will be an advanced and highly efficient production line, adopting a highly-functional painting technology which significantly reduces the number of painting processes, as well as a highly efficient laser welding machine for the stamping plant.

The third line is scheduled to become operational in 2015, with an initial annual production capacity of 120,000 units. GHAC is planning to further expand the capacity up to 240,000 units in the future. When the third line becomes operational in 2015, GHAC's overall annual automobile production capacity will be increased from the current 480,000 units to 600,000 units, increasing Honda's overall annual automobile production capacity in China from the current 870,000 units to 1.01 million units.

The total investment for the third line (with capacity expandable up to 240,000 units) and the new engine plant is expected to be approximately 3.56 billion R.M.B.(approximately 59.3 billion yen*2).

By expanding production capacity in the dynamically growing automobile market in China, Honda will further strengthen its ability to deliver new products which focus on Chinese customers, with speed, affordability and low CO2 emissions.

*1
Honda internal research
*2
calculated with an exchange rate of 1 R.M.B.= 16.66 yen

<Reference> Honda’s Annual Automobile Production Capacity in China

Plant/Line Current 2015
Guangqi Honda HuangPu Plant No. 1 240,000 240,000
ZengCheng Plant No. 2 240,000 240,000
No. 3 - 120,000
Subtotal 480,000 600,000
Dongfeng Honda 1st Plant 240,000 240,000
2nd Plant 100,000 120,000
Subtotal 340,000 360,000
Honda Automobile (China)  (export only) 50,000 50,000
TOTAL 870,000 1,010,000

About Guangqi Honda Automobile Co., Ltd.

Established: July 1998
Capital Investment: US$283.29 million
Capitalization Ratio: 50% Guangzhou Automobile Group Co., Ltd.
40% Honda Motor Co., Ltd.
10% Honda Motor (China) Investment Co., Ltd.
Location: Guangzhou City, Guangdong Province, China
Representative: Toshiaki Mikoshiba, President
Employment: Approximately 7,600 associates

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