TOKYO, July 21 (Xinhua Silk Road) -- Japan's Honda Motor Co., Ltd. and China's Guangzhou Automobile Group Co., Ltd. (GAC) have signed an agreement to extend their joint venture (JV) term by ten years through 2038, said Honda Motor (China) Investment Co., Ltd., a wholly-owned Honda subsidiary in China, on July 20.
Honda will further strengthen its automobile business in China by fully leveraging the respective technologies and resources of Honda and GAC Group, and continuing to offer products that meet the diverse needs of customers, said a statement published on Honda's website on July 20.
GAC Honda was established in July 1998 in Guangzhou, south China's Guangdong Province, as the first Honda automobile production and sales joint venture in China and began automobile production in March 1999.
Tang Jin, senior researcher at Japan's Mizuho Bank, said the agreement underscores commitments of both sides to maintaining their partnership in the Chinese market.
He noted that with the rapid rise of Chinese automakers in electrification and intelligent technologies, Japan's joint ventures in China are entering a new stage that requires strategic adjustments to enhance competitiveness. (Contributed by Li Shimeng, edited by Li Xueqing with Xinhua Silk Road, lixueqing@xinhua.org)
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