Honda and GAC agree to build an electric car factory in China to produce plug-in cars together. According to a stock exchange filing, the 430 million dollar plant will have a capacity for 170,000 new energy vehicles per year.
The move is motivated by China’s EV sales quota set to kick in next year. Rather than aiming for a development cooperation alone though, Honda will likely use the joint venture to produce the compact SUV Trumpchi GS4 from GAC and to distribute it under the Honda label. The electric version is the ix4. That way, the Japanese carmaker can quickly reach the necessary number of new energy vehicles and continue to sell other cars in China as well.
Such a deal is not new and in fact looks much like the recent announcement made by GAC and Toyota in May. The Japanese carmaker said they would begin the sale of the ix4 from their joint venture partner GAC, while also expanding the production capacity for new energy vehicle by 35 percent over the next three years (we reported).