(Reuters) - Honda Motor Co (7267.T) will delay the construction of a planned $822 million plant in Wuhan, China, as demand slows in the world’s largest auto market, Bloomberg reported.
Honda had planned to start construction on a third plant with Dongfeng Motor Group Co (0489.HK) this year but it may now start building the plant around 2017 and target to begin production no later than July 2018, Bloomberg reported, quoting Chen Binbo, vice president of Honda’s joint venture with Dongfeng.
A final decision will be made at the end of the year, Bloomberg said. (bloom.bg/1LNdmbP)
A Honda spokesman in China told Reuters that the company has not made public any plans about a new plant in Wuhan, adding that Dongfeng Honda’s existing two plants already have more capacity than required to meet its sales targets.
Earlier this year, Honda’s chief executive said the Japanese automaker expects to boost China sales in the current fiscal year as demand among younger consumers helps it shake off jitters about the country’s economy and financial markets.
Reporting by Sneha Teresa Johny in Bengaluru and Jake Spring in Shanghai; Editing by Anupama Dwivedi