GAC Honda to Develop New Models in Two Years, Exclusively for China

The GAC Honda joint venture will jointly develop a pair of electric vehicle models over the next two years, which will be produced in China and sold exclusively in the country. The joint venture, which will run until 2038, has drawn up plans to accelerate the development of future electric vehicles (EVs) in order to compete with various brands in the country, as reported by Carscoops on Thursday local time. The accelerated development plan is necessary to halt Honda’s declining sales. Two hybrid models will be introduced within the next two years, giving the joint venture four new electric vehicles in that period. GAC Vice President Lin Zhibin added that the company is also seeking to improve production efficiency by 20 percent. Rather than having Japanese teams lead the new models, GAC Honda will instead have local teams on the ground daily in an effort to get closer to market demand and the desires of Chinese consumers, meaning connectivity features will be tailored to domestic demand. GAC Honda will also work with GAC’s existing service network to establish more than 1,000 new sales outlets across China. Details regarding the next-generation models being developed by GAC and Honda remain limited.