GAC Honda Joint Venture Extended Until 2038

[Joint Venture Update] Honda and GAC have renewed their joint venture agreement for GAC Honda until 2038, maintaining the equity ratio at 50:50.

Core Development: Extending Partnership Against the Tide to Stabilize Joint Venture Foundation

On July 20, Honda China announced it has signed a strategic renewal agreement with GAC Group, extending the GAC Honda partnership from 2028 to 2038, with the equity structure remaining unchanged at 50:50—a rare case among Japanese automakers’ joint ventures in recent years that preserves equal ownership.

Key Metrics: Sales Under Pressure Despite Cumulative Volume Exceeding 11 Million Units

Since its establishment in 1998, GAC Honda has surpassed 11 million units in cumulative sales. However, impacted by delays in its electrification transition, its sales in June 2026 totaled only 14,099 units, down 53.03% year-over-year; total sales for the first half of the year reached 68,300 units, a 55.82% decline compared to the same period last year.

Strategic Rationale: Betting on China Market’s Long-Term Value

Amid an overall decline in joint venture market share to below 25% and new energy vehicle (NEV) penetration standing at just 11.9%, this renewal underscores both parties’ recognition of the long-term strategic value of the Chinese market, aiming to advance electrification transformation and deepen localization through a stable partnership.