(Yicai) Aug. 8 -- Japanese auto giant Honda Motor will reportedly cut its total auto capacity in China by 200,000 units a year due to intensified competition and sluggish sales while hiking its annual battery electric vehicles output by 240,000 units.

Honda is coordinating its capacity, news outlet Jiemian reported yesterday, citing the Minato-based firm. Counting the cut of 50,000 autos made earlier this year, its related annual capacity in China will drop to around 1.24 million units from 1.49 million, according to its plan.

Honda plans to cut its total annual output of fuel cars by 490,000 units and raise that of its two BEV factories, which will become operational this year, by 240,000 units, it pointed out.

Honda's sales in China dropped 24 percent to 468,473 units in the seven months ended July 31 from a year ago.

Editor: Martin Kadiev