Visitors take pictures at a GAC Honda event at a shopping plaza in Beijing in July 2024. [Photo by Li Fusheng/chinadaily.com.cn]
Honda and its Chinese partner GAC have signed an agreement to extend the term of their joint venture through 2038, said GAC Honda Motor (China) Investment Co, a wholly owned subsidiary of the Japanese carmaker, on Monday.
Established in July 1998, GAC Honda was Honda’s first automobile production and sales joint venture in China. It began vehicle production in Guangzhou, Guangdong province, in March 1999.
Over the past decades, the Sino-Japanese joint venture has produced and sold more than 11 million vehicles, contributing to the development of China’s automobile industry.
Honda said China has become the world’s largest automobile market by sales volume, while competition continues to intensify amid the rapid development of electrification and intelligent technologies.
GAC Honda delivered 68,318 vehicles in the first half, down 55.82 percent year-on-year.
China saw a 21.1 percent fall in its vehicle market in the same period, with 9.92 million vehicles delivered, according to the China Association of Automobile Manufacturers.
The slump was primarily the result of the increasing unpopularity of gasoline vehicles, said the CAAM, adding that the fall has shown no sign of slowing down.
Honda said it will further strengthen its automobile business in China by leveraging the respective technologies and resources of itself and its partner GAC, and continue to provide products that meet the diverse needs of Chinese customers.
Tanks to chinadaily.com.cn
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