Honda planning to produce Acura cars in China starting in 2016

Article by Christian Andrei, on July 18, 2013

Starting in 2016, Honda is planning to build Acura cars in China with a local partner as the demand for luxury vehicles is growing in the world’s biggest auto market. Honda said on Thursday that it has agreed with Guangzhou Automobile Group Co. to jointly produce Acura cars in China but refused to provide more details such as the anticipated size of production capacity or which models it plans to produce.

According to a Beijing-based Honda spokeswoman, one model Acura is likely to produce in China is a new compact SUV which is not currently offered, while the other model is based on a concept model, the SUV-X, shown back in April at the 2013 Shanghai Auto Show. Honda’s move to produce cars in China is not new among carmakers as it is much cheaper than transporting the vehicles from overseas.

For those who don’t know, Audi, Mercedes-Benz and Bmw all produce models in China with local partners. General Motors also begun production of Cadillac cars in China, while Nissan is currently building a factory in the eastern city of Dalian to produce some models for its upscale Infiniti brand. [source: Reuters]

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