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Guangzhou Honda Automobile Co. has become China's fourth carmaker - after Shanghai Volkswagen, FAW Volkswagen and Shanghai General Motors - to produce 1 million cars, the company's Beijing office announced on Sunday.

 

The Sino-Japanese carmaker, established in 1998, increased its annual output from 10,000 cars in 1999 to 260,000 in 2006.

 

Despite being a latecomer to manufacturing in China, Japanese auto giant Honda has increased its market share by leaps and bounds by introducing a series of new models to the country, taking an aggressive pricing approach, and tuning in to the needs of local buyers, said analysts.

 

Guangzhou Honda brought out the hugely popular Accord in 1999 to fill a gap in the Chinese market for high-end private cars. In 2003, when the older model was still selling well, Honda pulled it from the production line and introduced a new, relatively inexpensive successor, forcing down the prices of similar vehicles.

 

The Sino-German carmaker Shanghai Volkswagen, established in 1985 as China's first joint venture carmaker, produced its 3 millionth car in 2005.

 

FAW Volkswagen, established in 1991, made its 1 millionth car in 2004, while Sino-American Shanghai General Motors took eight years to turn out 1 million cars after being set up in 1997.

 

China currently has 30 sedan manufacturers currently, nine of which produce more than 200,000 units a year.

 

(Xinhua News Agency February 12, 2007)