Expected to become operational in 2024, the plant will produce 120,000 EVs per year
Rendering of the new EV production plant of GAC Honda. (Credit: Honda Motor Co., Ltd.)
GAC Honda Automobile has started construction on a new electric vehicle (EV) production plant in the Guangdong Province, China, which will involve an initial investment of CNY3.49bn ($520m).
The 400,000m2 EV production plant is being built within the Guangzhou Economic and Technological Development District in Guangzhou City.
Expected to begin operations in 2024, the plant will have an annual production capacity of 120,000 EVs.
GAC Honda Automobile is a China-based automobile production and sales joint venture (JV). Honda Motor and Guangzhou Automobile Group hold stakes of 50% each in the JV, which was established in 1998.
Honda Motor stated: “The plant will proactively pursue sustainable initiatives including the use of solar power and other renewable energy sources. Moreover, by adopting a number of advanced production technologies, GAC Honda will strive to make it a highly efficient, smart and low-carbon EV plant.”
Honda Motor is planning to launch 10 e:N Series EV models in China by 2027. The company said that GAC Honda’s new EV production plant will become a symbolic production operation that will underpin a larger EV lineup that the JV will be launching in the coming years.
Besides, the plant will serve as a core operation of the production of Honda EV in China alongside the new EV plant to be constructed by Dongfeng Honda Automobile, which is targeted to start operations in 2024.
Honda Motor expects its total base annual automobile production capacity to be 1.73 million units in 2024 after both the new EV plants of GAC Honda and Dongfeng Honda become operational.
Last year, Honda Motor set itself a target of selling 100% electric vehicles by 2040.