Honda set to boost Chinese export capacity 25th March 2004
Automotive companies are set to develop the level of exports from China as they seek to boost vehicle production capacity at certain key sites in the region.
Leading the charge is Honda, which has unveiled plans to export 50,000 vehicles a year from China to Europe from next year.
Indeed, while certain firms, including Toyota and Volkswagen, say they are not planning on exporting from the country, Honda has detailed plans for a new joint-venture plant in Guangzhou.
Honda Motor Europe president Minoru Harada said the firm planned to "intensify" activities outside of Japan, targeting a doubling of capacity in China this year.
However, some other industry experts say that the level of domestic demand in the country means that there will not be enough capacity to export in significant quantities.
Citroen managing director Claude Satinet and Renault SA CEO Louis Schweitzer both told Automobilwoche that large levels of exports to Europe remained unlikely.
It is a view shared by General Motors CFO John Devine, who commented: "Given the growth of the Chinese market, the expansion of the industry there is just trying to keep pace with the local demand."
China is the fastest growing automotive market in the world and has been the site of much industry activity in recent months.
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