Asia Tech Wire (Aug 8) -- Honda Motor revealed on Wednesday that it intends to further reduce its annual production capacity in China by 200,000 units and is coordinating in this regard.

Honda has previously indicated a reduction of 50,000 units, with the cuts totaling 250,000 units.

The move comes as the Japanese automaker has been facing fierce competition with local firms in China, with sales in the doldrums.

From January to July this year, Honda sold a total of 468,473 vehicles in China, down 24.4% year-on-year.

As planned, with the current annual production capacity of 1.49 million units in China, Honda expects to reduce it to around 1.24 million units.

Among them, Honda intends to reduce its current production capacity, which is mainly for gasoline vehicles, by 490,000 units, while adding 240,000 units from two pure-electric vehicle plants that will open within the year.