Jan. 30, 2012 (China Knowledge) - Dongfeng Automobile Co Ltd<600006
>, one of the leading Chinese auto makers, has teamed up with France-based PSA Peugeot Citroen and Japanese Honda Motor Co to further expand their market in Wuhan
, capital of Hubei
The city's output value in auto industry is expected to increase by over RMB 70 billion per year and reach around RMB 400 billion in 2016, principally boosted by Dongfeng's joint auto projects, said analysts.
Dongfeng Peugeot has started construction on a transmission production plant in Wuhan
which would cost RMB 8 billion and is part of the JV's plans to make the city its third major Chinese production base.
Dongfeng Honda also intends to begin work on its second plant in Wuhan
. The site is scheduled to start operation on July 1 to increase the JV's overall output capacity to 500,000 vehicles per year. Shanghai-listed
Dongfeng Automobile sold 3.06 million vehicles in 2011, reflecting a year-on-year increase of 12.25%, and the company targets 3.3 million-auto sales for 2012.
Sales revenue grew by 9% from two years ago to RMB 400 billion in 2011, which is expected to increase to RMB 420 billion in 2012, sources reported.