New plant to double Suzuki’s output in China image

Suzuki Motor Corporation plans to build a new car factory in China, which will double the production capacity of its joint venture with Chang’an Automobile to 500,000 units a year, according to the Nikkei business newspaper.

Chongqing Chang’an Suzuki Automobile announced recently that the company has started construction of its second manufacturing facility as it tries to overcome insufficiencies in production capacity. Currently the joint-venture has a production capacity of 200,000 units a year.

The new plant will be situated next to the current one in the city of Chongqing and will cost around 60 billion yen ($779 million) to build. The facility will reach its annual production target of 250,000 cars and 300,000 engines by 2015. The plant will be built in two phases, with phase one to be put into operation in 2013. By the time it’s completed, the facility is expected to generate sales revenue of $5 billion each year.

Suzuki sold about 300,000 cars in China last year, ranking fourth among Japanese automakers in China, behind Nissan, Toyota and Honda. In the first 10 months of 2011, Chang’an Suzuki reported sales of more than 180,000 units, 14 percent more than in the same period a year ago.