Honda President Takeo Fukui told a Tokyo news conference vehicles bearing the new brand -- which he did not identify but said would be different from the existing Honda brand -- will be sold in China as early as 2010.

Guangzhou Honda Automobile Co., the company's auto joint venture in China, will establish a $246 million research and development subsidiary in the southern China city of Guangzhou, formerly known by the English-language name Canton, the Kyodo News service reported.

The R&D subsidiary, to be located in a compound covering more than two square miles, will have a full-scale test course, Fukui said.

The joint venture has received approval from China to begin engine production, he added.