Honda Motor Co Ltd plans to produce diesel engines in Britain to meet strong demand in Europe for fuel-efficient vehicles, a financial daily reported yesterday.
Currently, Japan’s third-biggest auto maker exports diesel engines to its British factory from Japan, where they are installed in passenger cars.

Nihon Keizai Shimbun (Nikkei) said Honda plans to transfer part of the engine production there, and that it has already built assembly lines inside its British plant.

The British plant will first assemble the diesel engines from parts sent from Japan, but will later increase its output capacity by producing engine parts itself.

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