19:32 20-07-2026

Honda and GAC Honda: joint venture extended to 2038 as China sales keep falling

Honda and GAC have renewed their GAC Honda joint venture for another decade, keeping the 50/50 ownership split unchanged as sales in China slide sharply.

Honda and GAC have kept the GAC Honda joint venture alive through 2038, leaving the ownership structure unchanged: each partner still holds a 50% stake. The extension gives the company time to refresh its lineup and shift toward electrified vehicles. For owners, it lowers the risk of a sudden halt to production and after-sales support in China, though the dealer network's shape may still change as the business evolves.

GAC Honda has been running since July 1998 and was the first Honda venture in China responsible for both manufacturing and sales at once. Over that time the company has sold more than 11 million cars. The two partners intend to combine Honda's technology with GAC's resources to reorient the business around EVs, plug-in hybrids and intelligent systems.

The agreement was renewed just as demand is falling off sharply. In the first half of 2026, GAC Honda's sales dropped 55.82%, to 68,318 vehicles. June alone brought 14,099 cars, down 53.03% year over year. Production over the six months fell by almost half, to 82,884 vehicles.

In 2027 the venture plans to launch three models: a new-generation Accord, a car built on the fifth-generation i-MMD hybrid system, and a self-developed model on a Chinese platform for new-energy vehicles. The plan signals a shift in the joint venture's role: Honda's global models alone are no longer enough to compete with BYD, Geely and other domestic automakers, so more development is moving closer to the Chinese market.

The renewed agreement on its own is no proof that sales are about to recover. What matters more to buyers is how long support continues for specific gasoline models, how easily parts stay available, and which dealers keep servicing cars once the lineup is updated.

For the Russian market, the deal does not signal an official Honda return. The announcement covers only production and sales in China; any future supply of Chinese-market Accord, Breeze or electric models to Russia will still depend on independent importers.