Honda Plans Russia Plant

The company is looking to invest several billion yen to produce 30,000 to 50,000 cars annually, the Nikkei business daily reported, adding Honda has submitted the plans to the Russian government and had started talks with officials on the location of the assembly plant, which will use components imported from its global facilities. The Russian Far East is seen as one possible candidate, the Nikkei said. A Honda spokesman declined to comment on the report.

Honda, which sold about 18,000 cars in Russia last year, has been selling its cars with import tariffs of about 50 percent, making them more expensive than locally produced cars of its competirors.