Published on: 2026-07-21
Source: People’s Republic of China — Translation
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Guangzhou, July 21 /Xinhua/ — Honda Motor and Guangzhou Automobile Group Co., Ltd. /GAC Group/ on Monday agreed to extend their joint venture agreement until 2038, as the Japanese automaker aims to strengthen its position in the world’s largest automobile market.
The equity ratio of the GAC-Honda joint venture in China will remain unchanged under the agreement, while the enterprise will accelerate the transition to new energy vehicles and work on restoring its competitiveness, the company said.
The extension of the agreement occurs against the backdrop of foreign automakers facing increasing competition in China, where Chinese manufacturers have made significant progress in electrification and intelligent technologies.
Honda and GAC Group stated that they intend to fully utilize their technologies and resources to produce products oriented towards the diverse needs of customers.
GAC-Honda was established in July 1998 as Honda’s first joint venture for manufacturing and selling cars in China. Production began in Guangzhou / administrative center of Guangdong Province, South China / in March 1999.
The company was one of the first in China to implement the practice of simultaneously launching models in the Chinese and overseas markets, as well as promoting the development of green and low-carbon production. Since its establishment, GAC-Honda has sold more than 11 million vehicles.
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