The 2 billion yuan ($300 million) assembly plant - located in central China's Hubei province - will have an initial production capacity of 100,000 units when it opens in 2012. Originally, the plant was to produce 60,000 units when it opens.

Honda Motor Co. offered an update of the project on its Web site.

In 2013, the Wuhan plant's production will expand again to 120,000 units, and eventually to 240,000 vehicles a year.

Dongfeng Honda was established in 2003 by Honda Motor Co. and Dongfeng Motor Group as a 50:50 joint venture. The partnership produces the CR-V, Civic and Spirior models.

During the ground-breaking ceremony in Wuhan, Seiji Kuraishi, Honda's chief operating officer in China, said the company may build hybrid-powered vehicles in China. He did not offer further details.

The company already imports the Civic hybrid to China. In 2012, the company will start importing the CR-Z and Insight hybrids.

Honda also has a joint venture with Guangzhou Auto Group Corp. called Guangqi Honda Automobile Co. Once its latest round of expansion is complete, Honda says its various Chinese ventures will produce up to 890,000 units a year.

Honda is China's sixth largest international automaker, with group sales of 478,500 units in the first nine months.