Honda and GAC to produce electric vehicles in China
- Honda and its Chinese partner GAC will build a plant for the production of electric cars (BEV) and rechargeable hybrids (PHEV) through a new joint venture (49% Honda and 51% GAC). The new plant will be able to produce up to 170,000 vehicles per year from 2020 onwards. Vehicles manufactured under this agreement are expected to be marketed under the Trumpchi brand, a brand that GAC has been using for its own models for several years.
- This agreement is in response to the quotas imposed by the Chinese government on manufacturers based in China who allocate a minimum of 10% of electric vehicles in 2019 to each local manufacturer.
- GAC is Honda's second largest partner in China, with 642,000 badged Honda models coming out of its plants in 2017 out of a total of 1,443,000 Honda models manufactured last year in China. In addition, GAC manufactured 512,000 Trumpchi models and 212,000 models of other brands last year.
- Theoretically, according to the quotas imposed by the Chinese government, GAC should therefore manufacture more than 150,000 electric vehicles in 2019, under several brands. GAC had already negotiated an agreement with Toyota in the first half of 2018 to manufacture low cost electric vehicles. Until then, GAC had never worked with Toyota.
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