Honda Motor (China) stated Thursday that Dongfeng Honda Automobile will construct a new dedicated electric vehicle manufacturing facility in order to establish a suitable production system and capabilities in advance of the company's planned EV lineup growth in the next few years.
Honda Motor China is a wholly-owned Honda subsidiary in China, while Dongfeng Honda Automobile is a Honda automobile production and sales joint venture in China.
Honda said in a statement that the factory would have a capacity of 120,000 automobiles per year.
Honda, Japan's second-largest manufacturer, is planning to introduce a new electric vehicle brand in China this year dubbed e:N Series, with plans to debut ten models in collaboration with Dongfeng.
The joint venture will establish an electric vehicle manufacturing facility in Wuhan as the Japanese automaker looks to accelerate its EV expansion in the world's largest automotive market.
Honda disclosed in a statement Thursday that the new EV facility in Wuhan Economic Development Zone in Hubei Province will have a lot area of 630,000 square meters and will begin operations in 2024.
The facility will handle all manufacturing operations, from welding to stamping, vehicle evaluation, painting, assembly, and final vehicle inspection, and will automate a significant portion of the assembly line, according to the announcement.
Japanese automakers, formerly hesitant to transition to electric vehicles, are now ramping up and intending to invest tens of billions of dollars, with China considered as a critical market.
Historically one of China's "Big Four" automakers, Dongfeng ranks alongside Changan Automobile, FAW Group, and SAIC Motor in terms of production.
Toyota Motor has announced a $35 billion investment in electric vehicles, a significant shift for the world's largest manufacturer, which had traditionally favored hybrids.
Additionally, the new plant will pursue sustainability initiatives such as the use of renewable energy sources like solar energy, the use of recycled water and other resource conservation measures, and the reduction of VOC (volatile organic compound) emissions, a significant source of air pollution.
Honda Chief Executive Officer Toshihiro Mibe said last year that the company would transition to an all-electric vehicle lineup by 2040, making it the first carmaker in Japan to do so openly.
The automaker expects to launch 10 electric vehicles from Dongfeng Honda and GAC Honda over the next five years, with the plan of exporting its EV series from China.
Meanwhile, Honda reported that its vehicle sales in China were down nearly 4% last year.
