The automotive industry in Hubei's capital of Wuhan looks set to grow over 70 billion yuan (US$ 11 billion) in value annually, a report in news paper said today.

It is predicted to be worth 400 billion yuan (US$ 67 billion) in 2016, with Dongfeng Peugeot and Dongfeng Honda's new production programs crucial to attaining that goal.

Dongfeng Peugeot has already committed to its new 8 billion yuan (US$ 1.28 billion) program to build transmission systems in the city. The program is part of the joint venture's plan to make Wuhan into its third major Chinese production site, and is the city's largest auto part program to date.

Meanwhile, Dongfeng Honda will begin work on its second factory. The site is scheduled to begin operation on July 1 and will help increase the joint venture's overall production capacity to 500,000 vehicles.

Ever since 2003, the joint venture has constantly been pushing its first production site to the limit. Despite the earthquake in Japan early in 2011 and cooling down in the domestic market, Dongfeng Honda has performed strongly in China, with about 20,000 CR-V SUVs being sold every month.

The JV also plans to release five new models 2012, making the new site more and more important.