GAC Honda Extends Joint Venture Term to 2038, Maintains 50:50 Equity Split

On July 20, GAC Honda announced that it has reached an agreement with Honda China to extend their joint venture cooperation period by 10 years—from the original expiration date in 2028 to 2038. The equity structure will remain unchanged, with both Chinese and foreign partners holding a 50% stake each. This renewal decision, made two years ahead of the original expiration date, follows the common practice among existing joint-venture automakers in China of renewing agreements in 10-year cycles and reflects both parties’ strategic planning for medium- to long-term development. Established in July 1998, GAC Honda was Honda’s first vehicle-manufacturing joint venture in China. Honda’s other vehicle-manufacturing joint venture in China, Dongfeng Honda, was established in 2003 and also operates under a 50:50 equity structure.