Honda and GAC to build new energy vehicle factory with 3.27 billion yuan to expand production capacity in China

A document submitted by GAC to the stock exchange shows that Honda will invest 3.27 billion yuan in its joint venture with GAC Group in China to produce new energy vehicles.

Guangqi Honda's expansion of new energy vehicles is to adapt to China's dual-credit policy, which requires new energy vehicles to account for 10% of automakers' total output by 2019.

In order to expand production capacity, GAC Honda will build a new factory with an estimated annual production capacity of 170,000 new energy vehicles (including plug-in hybrid vehicles).

According to people familiar with the matter, the capacity expansion will produce GAC's battery-powered compact SUV Trumpchi GS4 model, and it will be sold under the Trumpchi trademark rather than the Honda trademark.

Zheng Heng, executive vice president of GAC Honda, once said that GAC Honda will introduce new energy vehicle models such as EV and PHEV by the end of the year.

GAC Honda's first plug-in hybrid model is the "Generation", which is expected to be launched on the market this year. The new car is based on the Trumpchi GS4 and will be sold under the Trumpchi brand.

To help the joint venture GAC Toyota meet the dual-credit policy requirements for new energy vehicles, Toyota used GAC Group's low-cost technology to develop and jointly manufacture a battery-powered vehicle. This pure battery-powered model named GAC Toyota ix4 is an electric compact SUV developed based on the Trumpchi GS4 model and has a high degree of similarity to the original model.

Recently, Zheng Chunkai, executive vice president of Dongfeng Honda, revealed that Dongfeng Honda's third plant will be officially put into production in 2019, and will first produce the CR-V model. Later, the plant will also produce Honda's hybrid, plug-in hybrid and pure electric models.

Honda's electrification journey in China has entered the fast lane.

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.