Honda Motor Co. is joining the growing number of automobiles investing in China by having sedans manufactured locally. The Japanese carmaker announced on Thursday its plans to collaborate with local manufacturer Guangzhou Automobile Group Co. to produce and market Acura cars, Honda’s line of luxury sedans. During the Shanghai Auto Show, Honda CEO Takanobu Ito announced that the joint-venture between Honda and GAC Group is set to produce cars beginning 2016
According to the spokesperson of Honda in Beijing, the model that will be manufactured in China is not included in the current line-up of Acura cars but may be inspired by the compact SUV-X, a “concept” model unveiled at the Shanghai Auto Show back in April. As for other details, like the number of production and other models involved, Honda is yet to make the announcement. Having luxury cars locally manufactured in China is more profitable as car exports require high tariffs, resulting in a limited number of sedans available in the Chinese market.
The automobile market in China is expected to surpass the US market, thus the influx of car makers in the mainland. Manufacturers like Audi, BMW, General Motors, and Mercedez-Benz have already partnered with local car makers in producing their luxury sedans. Even Nissan Motor Co. has also embarked on a local partnership, building a factory in Dalian to locally produce its upscale brand Infiniti.
Comments Off on JDP Startup Corner: Pros & Cons of Working with a Partner in Japan