Honda doubles down on China despite collapsing sales as CEO says carmaker ‘learned the hard way’

Honda Motor Co. has made a surprising move in the Chinese market, extending its joint venture with GAC Group through 2038 despite a significant decline in sales. The partnership, which was initially set to expire in 2027, has been extended for another 11 years, a decision that may raise eyebrows given the sharp drop in sales from 1.63 million vehicles in 2020 to just 645,000 in 2025. Honda's CEO, Toshihiro Mibe, has stated that the company is committed to maintaining its presence in the Chinese market, but the reasons behind this decision remain unclear. As the automotive industry continues to navigate the complexities of the Chinese market, Honda's decision to extend its joint venture with GAC Group will be closely watched by industry experts and investors alike.

Honda Motor Co. extended its China joint venture with GAC Group through 2038 despite sales plunging from 1.63 million vehicles in 2020 to 645,000 in 2025. CEO Toshihiro Mibe says cutting ties with ...