GAC Honda extends partnership to 2038 and launches China‑focused localisation strategy

On 2 August, GAC Honda held a media briefing in Taiyuan to outline its "more understanding of China" localisation plan. The programme calls for the launch of five new models over the next two years, including an updated hybrid line and two China‑specific new‑energy vehicles developed jointly by the two shareholders.

The plan follows the July 20 renewal of the GAC‑Honda joint venture, which keeps the 50:50 ownership split and extends the partnership to 2038, two years beyond the original 2028 expiry. The renewed agreement commits both parties to deepen technology sharing, accelerate the shift to electric vehicles, and give product‑development authority to a locally based team. Deputy general manager Lin Zhibin said the goal is to let the team that lives in China define the cars Chinese drivers need daily.

Key elements of the localisation drive include shifting from importing global models to creating China‑originated designs, increasing the share of domestic components, expanding a streamlined dealer network, and investing in digital‑focused talent to improve speed and cost efficiency.