Honda Motor and Guangzhou Automobile Group (GAC Group) have agreed to extend the term of their Chinese automobile joint venture, GAC Honda Automobile Co., Ltd., through 2038, reinforcing their long-term commitment to the world's largest automotive market.

The agreement was announced by Honda Motor (China) Investment Co., Ltd. on July 20. The extension comes as China's automobile industry undergoes a rapid shift towards electric vehicles (EVs), intelligent mobility and advanced automotive technologies, intensifying competition among global and domestic manufacturers.

Established in 1998, GAC Honda was Honda's first automobile production and sales joint venture in China, beginning vehicle production in Guangzhou in 1999. Since then, the company has recorded cumulative sales of more than 11 million vehicles.

The joint venture pioneered an integrated sales and customer service model combining vehicle sales, after-sales service, parts supply and customer feedback. Over nearly three decades, the partnership has expanded its manufacturing, research and development, and sales capabilities across China.

Under the extended partnership, Honda and GAC Group plan to combine their respective technologies and resources to develop a broader range of competitive products tailored to changing consumer demand. The collaboration is expected to place greater emphasis on electrification and intelligent vehicle technologies as Honda strengthens its position in China's rapidly evolving automotive market.

The extension follows GAC Honda's continued transition towards new-energy vehicles, including the launch of operations at its dedicated New Energy Vehicle (NEV) factory in 2024. The renewed agreement provides a long-term framework for the two companies to continue their automotive partnership through 2038.