Key facts
- Honda and GAC have extended their joint venture, GAC Honda, through 2038.
- The partnership was established in 1998 and has sold over 11 million vehicles.
- GAC Honda plans to launch three new models in 2027, covering ICE, hybrid, and EV segments.
- The company is collaborating with Huawei and Momenta for intelligent vehicle technology.
- Honda China experienced significant sales declines in June and the first half of the year.
Honda Motor Co. and Guangzhou Automobile Group (GAC) have extended their joint venture agreement for GAC Honda by 10 years, through 2038. Established in 1998, the partnership has sold over 11 million vehicles and operates with a capital of $867,215,960, split with GAC Group holding 50%, Honda Motor Co., Ltd. 40%, and Honda Motor (China) Investment Co., Ltd. 10%.
Despite launching a dedicated new energy vehicle (NEV) plant in 2024, GAC Honda has faced significant sales declines. Honda China's retail sales fell 44.5% year-on-year in June and 34.7% in the first half, while GAC Honda's own sales dropped 53.03% in June and 55.82% in the first half.
Looking ahead, GAC Honda plans to introduce three new models in 2027, encompassing internal combustion engine, hybrid, and NEV segments. The company is also collaborating with technology partners Huawei and Momenta to enhance its intelligent cockpit and advanced driver assistance systems. Honda stated the extension will have a minor impact on its consolidated financial results.