Guangzhou Honda Accord car now has 45.3 percent of its parts made in China, achieving state standards for the proportion of domestically produced auto parts.

Yuan Zhongrong, deputy general manager of the Guangzhou Honda Automobile Co, Ltd., said his company's ultimate aim is to have 80 percent of its parts manufactured in China, and next year the figure is expected to reach approximately 60 percent.

He noted that the promotion of the China-made proportion is the firm's own decision, saying that a higher proportion may free the company from the risks of fluctuations of foreign exchange rates. Lower labor cost and more convenient logistics in China will also help cut costs for the company.

Sixty-seven China-based parts providers for Honda are fully qualified, and their products are of high-quality, Yuan added.

Jointly established by the Guangzhou Auto Corporation Group and the Honda Motor Co, Ltd. of Japan in 1998, Guangzhou Honda has a registered capital of 1.16 billion yuan (140 million US dollars).

In March this year, the first Guangzhou Honda Accord rolled off the line in Guangzhou. By the end of 2000, the annual output will surpass 25,000 cars, according to the company's schedule.

Accords sell well in Japan, southeast Asia, and the United States, where over 40,000 Accord sedans are sold annually. (Xinhua)