Honda to up China procurement to 90 pct by end '08

TOKYO, May 27 (Reuters) Honda Motor Co. plans to raise its local procurement rate for car parts and components in China to 90 percent from 70 percent by the end of 2008, the Nikkei business daily said on Sunday.

The move is aimed at reducing costs ahead of the company's starting production of the new model Accord next year, company sources were quoted by the Nikkei as saying.

Company officials were not available for comment.

The Nikkei said the company had initially planned to raise its procurement rate to 80 percent and also moved forward the target date by several years.

Honda sold 33,944 vehicles in China in April, up 27.4 percent from a year earlier and outperforming 16 growth in the overall market.

REUTERS SZ PM0810