Wuhan’s importance as a car manufacturing centre is set to grow in coming months, according to official media. Dongfeng Automobile, PSA Peugeot Citroen and Honda Motor are all set to expand their operations in the capital of Hubei province.

The city’s auto sector output value is expected to increase by more than Rmb70bn a year to stand at some Rmb400bn in 2016, according to analysts, boosted principally by Dongfeng’s joint venture projects.

Dongfeng Peugeot has started to build an Rmb8bn transmission production plant in Wuhan, while Dongfeng Honda intends to begin work on its second plant in the city that will increase the JV’s overall output capacity to 500,000 vehicles a year.

Dongfeng Auto sold 3.06m vehicles in 2011, a year-on-year increase of 12.25 per cent, and the company targets 3.3m sales for 2012.