Honda Motor Co will jointly set up a new automobile plant in China with two Chinese automakers to produce and export its small cars, said the company's President Hiroyuki Yoshino on Wednesday.

Honda, Guangzhou Auto Group Corp and Dongfeng Motor Corp are to invest in the new plant, which will be located in south China's Guangzhou city, said Yoshino at a news conference announcing Honda's new three-year business plan.

The new plant is expected to begin production by the end of 2004, Yoshino noted.

Company officials said the new Chinese plant will have the initial production capacity of 50,000 units annually, all of which will be exported to regions outside of China, such as countries in Asia and Europe.

Honda has so far produced midsize vehicles, such as the Accord and Odyssey, in China but will make compact cars such as the Fit, the officials said.

Honda's new three-year plan includes raising total vehicle production capacity in North America to 1.4 million units annually from 1.22 million by late 2004, boosting its operations in Asian countries and increasing its produce lineup in Europe.