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January 06, 2022 05:11 AM

Honda plans China EV plant to expand lineup

Venture with Dongfeng will have an annual capacity of 120,000 vehicles

Bloomberg
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    Honda Dongfeng China plant
    HONDA

    The Dongfeng-Honda factory will begin operating in 2024.

    Honda's joint venture in China with Dongfeng will build an electric-vehicle production plant in Wuhan as the automaker targets the world's largest car market to drive its EV expansion.

    The Dongfeng-Honda Automobile factory will begin operating in 2024, with an annual capacity of 120,000 vehicles, Honda said in a statement Thursday.

    The automaker plans to roll out 10 electric vehicles within five years from its Dongfeng Honda and GAC Honda ventures, with a plan to export its EV series from China.

    Separately, Honda said its China vehicle sales declined 4 percent last year.

    The automaker will conduct complete processes of production from stamping to welding and vehicle inspection, and will automate much of the assembly line, the statement said.

    Japanese automakers, which had been reluctant to shift to EVs, are now gearing up and planning to invest tens of billions of dollars, with China seen as a key market. Toyota has said it will invest $35 billion in EVs, a big pivot for the world's largest automaker that had previously championed hybrids.

    The plant will also use sustainable energy, such as solar power, and recycled water to reduce air pollution, the automaker said.

    Honda CEO Toshihiro Mibe said last year that it would go all-electric by 2040, becoming Japan's first automaker to publicly say so.

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        • Capgemini: The circular economy is spurring new thinking on EV batteries
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