Honda and GAC Extend Joint Venture Partnership in China Until 2038

Honda Motor and China’s Guangzhou Automobile Group Co Ltd (GAC Group) have agreed to extend their joint venture partnership until 2038, as the Japanese automaker strives to strengthen its position in the world’s largest automotive market. The ownership structure of the China joint venture, GAC Honda, will remain unchanged under the agreement, while the joint venture will accelerate its transition towards new energy vehicles (NEVs) and seek to rebuild its competitiveness, the company said. The partnership extension comes amid intensifying competition for foreign automakers in China, where domestic manufacturers have made rapid advances in electrification and smart technology. Honda and GAC Group stated they will fully utilise their respective technologies and resources to offer a range of products tailored to diverse customer needs. GAC Honda was established in July 1998 as Honda’s first joint venture for automobile production and sales in China. It began production in Guangzhou, the capital of Guangdong Province in southern China, in March 1999. The company was a pioneer in China in implementing the practice of simultaneous model launches in the Chinese and overseas markets, while also promoting low-carbon manufacturing. GAC Honda has sold more than 11 million vehicles since its inception.