Japanese Media: Observing the Shift in Technology Roles Through Honda's Extension of Joint Venture with Chinese Enterprises

According to a July 26 article published by Japanese media outlet *Nikkan Kogyo Shimbun*, Honda announced an extension of its joint venture agreement with Guangzhou Automobile Group, a major state-owned enterprise in China, for an additional 10 years, extending the contract until 2038.

In the Chinese automotive market, Honda has consistently operated through joint ventures with Guangzhou Automobile and Dongfeng Motor Group.

Faced with the rapid advancements in electric vehicle technology and increasingly fierce market competition, Honda recently announced a strategic shift in its technological development—from internal R&D driven by the parent company to a model led by local joint ventures. In terms of technology research and development and parts procurement, Chinese local enterprises have demonstrated strong capabilities.

Honda signed a 30-year joint venture contract with GAC Automobile (GAC Auto) in 1999, establishing the joint venture "GAC Honda," with equal investment from both sides. The company began localized production of passenger vehicles based on Honda’s technologies and models in Guangzhou City, Guangdong Province, becoming the first Japanese automaker to start local manufacturing in China. The Accord sedan remains GAC Honda’s flagship model to this day.

For Honda, with the rise of emerging new energy vehicle companies in China, rebuilding its business operations in China has become an urgent task. As part of structural adjustments, one plant each from GAC Honda and Dongfeng Honda, which previously produced internal combustion engine vehicles, has been shut down, as the company works to optimize previously excessive production capacity.

For Japanese automakers, this transition—from the traditional model of "Japan provides technology, China handles local production"—to relying on local joint ventures for technology development and supply chain management, then selling products to both the Chinese and global markets, marks a milestone in their journey toward the new energy vehicle era.

Original article: toutiao.com/article/1871741835633675/

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