Honda Motor Co. is taking steps to bolster its business in China with a major merger of its production and engineering units. Effective April 1st, Honda Engineering China Co. will be integrated into Honda Motor Technology China Co., according to the automaker’s China office. The move is aimed at consolidating the foundation for the company’s electrification business, which is becoming increasingly important as the world shifts towards greener transportation.
Honda Engineering China, which was established in Guangzhou in 2004, provides technical support for the production of Honda vehicles in China through its two joint ventures. Meanwhile, Honda Motor Technology China, created in Beijing in 2013, oversees the Japanese carmaker’s production strategy planning. The merger of these two units is expected to bring greater efficiency and synergies to Honda’s operations in China.
In 2022, Honda made a major push into the electric vehicle market in China with the launch of two new models based on its e:N Architecture F platform. The e:NP1 and the e:NS1 are both compact crossovers, with the e:NP1 built in partnership with GAC Motor and the e:NS1 assembled at Honda’s joint venture with Dongfeng Motor Group. These models represent Honda’s commitment to the Chinese market and its drive to offer customers the latest in green transportation technology.
In conclusion, Honda’s merger of its production and engineering units in China is a clear sign of the company’s commitment to the electrification business and its efforts to consolidate its position in the market. With the growing demand for electric vehicles in China and around the world, this move is expected to bring greater efficiency and competitiveness to Honda’s operations in the region.
Starting with the e:NS1 and e:NP1, Honda announced last year that ten electric vehicle models from its e:N Series will be launched in China by 2027.
However, in 2022, the automaker saw a 12% decline in sales in China, totaling 1.37 million, due to the impact of the pandemic and worldwide semiconductor shortages.
Honda has yet to reveal its electric vehicle sales figures in China for last year.