Honda to set up joint venture with China’s Dongfeng Motor, GAC to procure batteries
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Honda to set up joint venture with China’s Dongfeng Motor, GAC to procure batteries
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Honda to set up joint venture with China’s Dongfeng Motor, GAC to procure batteries

 

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Honda Motor Co said on Wednesday its Chinese unit will establish a joint venture – HDG (Beijing) Trading Service Co Ltd – with Dongfeng Motor Group and Guangzhou Automobile Group Co (GAC) at the end of the month to procure batteries for electric vehicles.

Honda’s Chinese division has also agreed to strengthen its existing partnership with the world’s largest battery producer CATL to ensure a stable supply of batteries, it said.

At present, Honda’s joint ventures to manufacture and sell four-wheel vehicles in China, Dongfeng Honda and Guangqi Honda, receive their batteries separately from CATL.

The latest change will allow battery procurement to be centralised through the soon-to-be-launched joint venture to increase efficiency.

Honda will invest 50% into the joint venture while Dongfeng and Guangzhou will each invest 25% into it.