Honda Motor in talks with China automaker

Honda Motor has said it is in far-ranging business talks with major Chinese automaker Dongfeng Motor Corp.

The Nihon Keizai Shimbun reported that the Japanese automaker is in talks to create a 50-50 joint venture in China before the end of the year.

It is hoped that it would start producing vehicles as early as next year.

A spokesperson for Honda has confirmed that they have been in discussions with Dongfeng.

The planned joint venture, expected to have its HQ in Wuhan, Hubei Province, would likely produce sport utility vehicle models such as the CR-V, the Nikkei said.

The venture's initial output is expected to be in the tens of thousands of vehicles a year but could rise to about 200,000 units per annum in the future.

Honda now manufactures automobiles in China through a joint venture with Guangzhou Automobile Group.

Dongfeng currently makes engines for Honda and has a joint venture with Nissan Motor.