Although selling new energy vehicles is not profitable, Honda still plans to invest 3 billion to expand its Chinese factory in order to "catch up"

According to Japanese media reports, GAC Honda has submitted a bidding application to the Guangzhou Municipal Government, hoping to increase the production capacity of new energy vehicles in China. It is reported that Honda plans to invest 3 billion yuan through a joint venture to expand its factory in Guangzhou. After the production capacity is increased, Honda's annual production in China can be increased by about 10% to 1.61 million vehicles.

Honda previously announced that it will launch 10 pure electric vehicles into the Chinese market within five years. This production expansion will also be an important step in helping Honda achieve this goal.

As a veteran automaker, Honda seems to be lagging behind in the field of new energy vehicles. It was not until this year's Shanghai Auto Show that Honda released its first self-branded pure electric vehicle in China, the Honda SUV e:prototype, but the car will not be officially launched until 2022. Therefore, this expansion of production in China is seen by the outside world as a "make-up" for the previously lagging progress.

In fact, Honda is somewhat reluctant to promote electric vehicles. Former president Takahiro Hachigo said he was not sure how many Honda customers wanted electric vehicles, and believed that pure electric vehicles had hidden dangers in terms of usability and safety. Therefore, Honda previously focused its research and development on hybrid models.

In July this year, Honda CEO Toshihiro Mibe bluntly stated that selling electric vehicles is not profitable at present, and Honda's accelerated electrification process is more to comply with electrification policies around the world: "If we can't keep up with international trends, we won't be able to do business."

As a winner of Toutiao's Qingyun Plan and Baijiahao's Bai+ Plan, the 2019 Baidu Digital Author of the Year, the Baijiahao's Most Popular Author in the Technology Field, the 2019 Sogou Technology and Culture Author, and the 2021 Baijiahao Quarterly Influential Creator, he has won many awards, including the 2013 Sohu Best Industry Media Person, the 2015 China New Media Entrepreneurship Competition Beijing Third Place, the 2015 Guangmang Experience Award, the 2015 China New Media Entrepreneurship Competition Finals Third Place, and the 2018 Baidu Dynamic Annual Powerful Celebrity.