Honda and GAC Group have signed an agreement to extend the term of their joint venture, GAC Honda Automobile Co., Ltd., through 2038. The equity structure of the joint venture will remain unchanged.

Established in July 1998, GAC Honda was Honda's first automobile manufacturing and sales joint venture in China. Since its establishment, the company has introduced a number of global Honda models to the Chinese market, developed an integrated sales and service network, and expanded its green manufacturing initiatives.

GAC Honda has sold more than 11 million vehicles to date, making it one of Honda's largest joint venture operations in China and an important contributor to the country's automotive industry.

China is the world's largest automotive market, with competition continuing to intensify as electrification and intelligent vehicle technologies reshape the industry.

Under the extended partnership, Honda and GAC Group will continue to leverage their respective technologies and resources to strengthen GAC Honda's competitiveness. The companies plan to accelerate the joint venture's transition to new energy vehicles while expanding their product lineup to meet evolving customer demand in the Chinese market.