Guangzhou strives to become one of the major automobile manufacturing bases in the country

Zhang Fangyou, chairman of the Guangzhou Automobile Industry Group, and Zeng Qinghong, executive deputy general manager of Guangzhou Honda Motor Co., Ltd., highlighted the strong potential of Guangdong to develop the automobile industry as a key pillar sector. They emphasized that Guangzhou is well-positioned to become one of China's major automotive manufacturing hubs. According to Zhang Fangyou, GAC Group's influence in the national automotive industry can be measured from two angles. In 2003, the group's total output reached RMB 32 billion, placing it among the top automakers alongside FAW, SAIC, and Dongfeng. From a regional perspective, Guangzhou ranked third in the country, following Shanghai and Changchun. Zhang pointed out that Guangzhou Honda currently leads the local auto industry. This year, Guangben completed the reconstruction of its production capacity, reaching 240,000 units. The company has set a target of producing and selling 202,000 vehicles this year, with an expectation of hitting 210,000 units. For next year, the plan is to produce between 240,000 and 250,000 units. Additionally, Guangzhou Honda is expanding its production scale, with shareholders currently discussing future plans. A new export plant with a capacity of 50,000 units will start operating by the end of this year, aiming to produce 30,000 units annually next year. With these developments, GAC Group is projected to reach an annual production of up to 280,000 vehicles next year. GAC Group is also advancing new collaborative projects, notably the Guangzhou Toyota Project. This initiative includes two components: a complete vehicle project, which has already been submitted for approval, and an engine project with a capacity of 500,000 units, launched at the end of February and expected to be completed by mid-2025. Zhang Fangyou stated that by 2010, the Guangzhou Automotive Industry Cluster could produce 1.3 million vehicles annually, generating nearly 300 billion yuan in sales revenue. Achieving this goal would position Guangzhou as a major global automotive manufacturing base. Zeng Qinghong, deputy general manager of Guangzhou Honda, believes that Guangdong and Guangzhou will continue to support the automobile industry as a key pillar. With the province's large and competitive market, the automotive sector is expected to grow into the most important production base in China. He added that by 2007, Guangzhou's automobile industry would consist of three major bases—Guangzhou Honda, Dongfeng Nissan, and Guangzhou Toyota—each producing over one million units. Combined with parts, passenger cars, light vehicles, and motorcycles, the entire automotive industry's output value could surpass 200 billion yuan. Moreover, the automotive sector would drive growth in steel, petrochemicals, transportation, finance, insurance, exhibitions, and more than 30 other industries, creating substantial economic value. Source: Xinhua News Agency

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