Honda May Develop Electric Car Batteries in China

BEIJING, May 27 -- Japanese auto maker Honda Motor Co is looking to China to develop electric car batteries, as it aims to tap the country's technology and vast resources, CEO Takanobu Ito said yesterday, Reuters reported.

"If there is a suitable chance, we hope to work with China to (develop) batteries," Ito said, adding that a major breakthrough is needed in battery technology and it would take 10 to 20 years before battery-run electric cars became common patterns.

He also said that the company will focus on hybrids and other fuel-efficient vehicles for the near future.

The Japan's second-largest auto maker may bring a limited number of electric cars to the U.S., Europe and Japan.

In 2009, Honda sold about 580,000 vehicles in China. Ito said that the country has the potential to become Honda's No.1 market after ten years.

Earlier this month, Honda announced a plan to increase its annual automobile production capacity in China by 36% to 830,000 units by 2012 from the current 610,000 units to meet robust demand growth in the Chinese market.