Honda and GAC Extend Joint Venture Agreement to 2038

Honda and GAC Group have officially signed an agreement to renew their joint venture, GAC Honda Automobile Co., Ltd., extending the partnership until 2038 while maintaining their current equity ratio. Established in July 1998, GAC Honda was Honda’s first joint venture in China dedicated to automobile production and sales. To date, it has sold over 11 million vehicles cumulatively and has been a pioneer in introducing globally synchronized models, implementing its “four-in-one” authorized sales and service model, and advancing green, low-carbon manufacturing practices. China has now become the world's largest automotive market, with rapid advancements in electrification and intelligent technologies intensifying market competition. Both parties stated they will leverage their respective technological and resource advantages to accelerate GAC Honda’s transformation of core competitiveness, advance its new energy transition, and continue delivering diverse products to meet evolving customer demands. According to GAC Group’s production and sales report released for June 2026, GAC Honda sold 14,099 vehicles that month, a year-over-year decline of 53.03%. Its cumulative sales for the first six months of 2026 totaled 68,318 units, down 55.82% compared to the same period last year.