According to Reuters, Dongfeng Honda Automobile CoLtd, a joint venture between China’s Dongfeng Motor and Japan’s Honda Motor, will build a new EV dedicated factory, located in Wuhan Economic & Technological Development Zone in Hubei Province, China, which is scheduled to be commissioned with a base annual production capacity of 120,000 units initially with a size of 630,000 square meters .
According to Honda’s press release, the new plant will conduct complete processes for EV production and work hard in order to achieve an industry-leading level of automation, mainly in the assembly area . The new plant will also take full utilization of renewable energy such as solar power toward the realization of carbon neutrality.
Honda announced on Oct 13 last year that it would speed up the electrification of the Chinese market, planning to sell only EVs and hybrid vehicles (HV) after 2030 in China, and would stop selling pure gasoline models.
Dongfeng-Honda has huge advantage on competing with other EV’s firm
Honda is a well-known company worldwide which has a huge economies of scale and has a lower average cost with a comparison with other China EV firms such as NIO, LiAtuo etc.Dongfeng Motor is known as a China second-largest automobile manufacturing firm and a state-owned holding company. Dongfeng-Honda has a strong foundation in producing EVs and could easily react to policies from the Chinese Gov’t under the state’s control.
In these few days, the rapid changes in China’s EV market such as reduction of subsidies on new energy vehicles, China EV firms’ outstanding results on deliveries, BYD action in ensuring the stability of the supply-chain, has already made the war in battling the new energy vehicle market more intense than ever. What changes may Dongfeng-Honda bring in the market? No one knows.
At least, Firms will be requested to put more effort into the realization of carbon in order to meet the target that was promised to the world by the Chinese Gov’t itself.
