Tokyo, Apr 16: Honda Motor Co. Ltd plans to produce diesel engines in Britain to meet strong demand in Europe for fuel-efficient vehicles, a Japanese financial daily reported on Sunday.
Currently, Japan's third-biggest auto maker exports diesel engines to its British factory from Japan, where they are installed in passenger cars.
Nihon Keizai Shimbun (Nikkei) said Honda plans to transfer part of the engine production there, and that it has already built assembly lines inside its British plant.
The British plant will first assemble the diesel engines from parts sent from Japan, but will later increase its output capacity to 20,000 to 30,000 units a year by producing engine parts itself.
In addition to producing the engines in Britain, Honda plans to increase by the end of next March output at two factories in Japan, which presently assemble 70,000 diesel engines a year, Nikkei said.