Honda and GAC Group Extend Joint Venture Term to 2038
Honda has signed an agreement with GAC Group to extend the term of their GAC Honda joint venture in China through 2038.
- 2038
- over 11 million units
- 867,215,960 USD
- 1998
What Happened
Honda Motor (China) Investment Co., Ltd., a wholly-owned Honda subsidiary, and Guangzhou Automobile Group Co., Ltd. (GAC Group) have signed an agreement to extend the joint venture term of GAC Honda Automobile Co., Ltd. (GAC Honda) through 2038. GAC Honda was established in July 1998 as Honda's first automobile production and sales joint venture in China. It has cumulative sales of over 11 million units and pioneered a 'four-in-one' sales and service network in China that integrates sales, service, parts supply, and customer feedback.
Honda signed a basic agreement on a passenger vehicle project in China
Guangzhou Honda Automobile Co., Ltd. established
Production of Accord began at Guangzhou Honda plant
Honda Automobile (China) Co., Ltd. established as export-dedicated plant
GAC Honda began operation of Development District NEV Factory
- 50%
- 40%
- 10%
over 11 millionunits
Since start of production in 1999
Why this matters
This extension secures Honda's long-term presence in China, the world's largest auto market, amid fierce competition and rapid electrification. It reinforces the partnership with GAC Group and supports Honda's strategy to strengthen its automobile business in China, affecting local production, suppliers, and customers.
Terms in This Story
- four-in-one network
- An automobile sales and service model that integrates sales, service, parts supply, and customer feedback management.
- NEV
- New Energy Vehicle, a Chinese term for vehicles that are fully electric or plug-in hybrid.
Summarised from the linked release; details can be imperfect — always verify against the original source.