Guangzhou Auto sees sales growth, capacity boost

SHANGHAI, Nov 12 (Reuters) - Guangzhou Automobile, China's sixth-largest auto producer, expects its sales to grow 12 to 13 percent this year and to maintain a double-digit growth rate next year, its chairman said on Thursday.

Guangzhou Auto also plans to begin an expansion plan next year at its joint venture with Honda Motor (7267.T), which would double production capacity at the No. 2 plant to 240,000 units a year, Zhang Fangyou told Reuters in an interview.

It will also start building a joint venture plant with Fiat (FIA.MI) at the end of this month with completion scheduled for 2011, Zhang added.

The moves will boost the group's annual production capacity to more than 1 million units in 2011 from its current 800,000, Zhang said.

Guangzhou Auto operates car ventures with Toyota Motor (7203.T) and Honda Motor. (Reporting by David Lin and Edmund Klamann; Writing by Alfred Cang)