GUANGZHOU – Honda Motor and China’s Guangzhou Automobile Group Co Ltd (GAC Group) on Monday agreed to extend their joint venture partnership until 2038, as the Japanese carmaker seeks to strengthen its position in the world’s largest auto market.
The ownership structure of the China joint venture, GAC Honda, will remain unchanged under the agreement, while the venture will accelerate its shift towards new energy vehicles and work to rebuild its competitiveness, according to the company.
The extension comes as foreign automakers face intensifying competition in China, where domestic manufacturers have advanced rapidly in electrification and intelligent technologies.
Honda and GAC Group said they would fully leverage their respective technologies and resources to offer products tailored to the diverse needs of customers.
GAC Honda was established in July 1998 as the first Honda automobile production and sales joint venture in China. It began production in Guangzhou, capital of South China’s Guangdong province, in March 1999.
The venture was an early adopter in China of the practice of launching models simultaneously in China and overseas markets, while it has also promoted lower-carbon manufacturing. GAC Honda has sold more than 11 million vehicles since its establishment.
Tanks to chinadaily.com.cn
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