According to reports form Xinhuanews, Dongfeng Honda Automobile Co., a joint venture between Japan's Honda Motor Co. and Dongfeng Motor Group Co. of China, plans to build a new plant in China in response to growing demand in that market.

The company will invest approximately $168 million in the plant, which is expected to begin production in the second half of 2012. The plant will have initial capacity of 60,000 units but will have capacity for up to 240,000 units, according to Xinhuanews.

With this new expansion, Honda's total annual capacity in China will reach 710,000 units. That number includes production at the new plant, as well as 360,000 units at Guangqi Honda and 50,000 units at Honda Automobile (China), said the report.