Nov. 4 (Bloomberg) -- Honda Motor Co., Japan’s second- largest carmaker, plans to add on average about 100 car dealerships a year in China over the next five years to meet demand, Chief Financial Officer Yoichi Hojo said.

The automaker will add about 80 dealerships this year in China to end 2009 at 760, Hojo said in an interview at the company’s headquarters in Tokyo today. Honda is producing at full capacity in China and will likely have to increase its manufacturing ability, Hojo said.

“Our customer base in China’s interior is growing, so we have to increase dealerships in those areas in addition to the coasts,” he said.

Honda is expanding its sales network in China as demand rises for Accord sedans and City compacts. The carmaker expects China sales to increase 16 percent to 550,000 vehicles this year ending in December, Hojo said today. Sales in China for the fiscal year ending in March will exceed an original forecast by 50,000 units, he said.

Honda last week almost tripled its full-year profit forecast as government stimulus measures boosted vehicle sales in China and Japan. The automaker also raised its sales forecast for the Asia region excluding Japan to 910,000 vehicles.

“In the long term, car sales will grow faster than GDP growth” in China, Hojo said.

To contact the reporter on this story: Makiko Kitamura in Tokyo at mkitamura1@bloomberg.net

Last Updated: November 4, 2009 00:02 EST