Honda is reworking its China business around local technology, supply chains and decision-making, promising 11 new models in the next two years and a sharp acceleration in development speed. The shift, outlined by Honda China this week, marks a departure from the global automaker's traditional model of importing vehicles developed in Japan, according to NetEase Auto.
Masayuki Igarashi, head of Honda's China operations, said the country remains vital not just as a sales market but as a hub for electrification and intelligence. "For Honda, the meaning of the Chinese market is more than sales; it is an important market for advancing electrification and intelligence change, and this will never change," he said.
Local partners take bigger role
Honda will lean more heavily on its joint-venture partners GAC Group and Dongfeng Group for new-energy platforms and technology, while bringing in Chinese suppliers including autonomous-driving firm Momenta and Huawei for its HarmonyOS cockpit. Starting with models launched in 2027, Momenta's navigation-assisted driving technology and Huawei's cockpit system will be introduced gradually.
The company also plans to raise the local sourcing ratio for vehicles launched in 2028 to more than 99 percent. Honda said it has cut its product development cycle by nearly half, while stressing that quality and safety reviews remain independent and can halt any program.
For the first time, Honda has appointed a Chinese employee as project leader for a new electric model under development, scheduled to launch by 2027. Local managers now account for about 30 percent of management positions in its R&D operations, and Chinese staff will take part in supplier selection, commercial negotiations and product decisions.
Dual-track strategy: EVs plus hybrids
Honda described its product plan as a dual-track strategy of "accelerating new energy across the board while making steady progress on combustion vehicles." It will expand its lineup of models with a new-generation hybrid system, developed specifically for Chinese consumer expectations rather than simply imported from global programs.
From 2027, Honda will launch its first new-energy vehicle using a Chinese partner's technology, including the powertrain, with further models to follow. Development will be a three-way effort involving the Chinese partner, the joint venture and Honda itself, combining local platforms with Honda's strengths in safety, quality, driving pleasure, space and design.
Honda has also been consolidating its China operations. In 2025, Dongfeng Honda Engine Co. merged into GAC Honda as a wholly owned subsidiary, and GAC Honda renewed its joint-venture contract in July. The company acknowledged it faces severe competition in China and said the reforms are its response.
