Honda Opens First New Energy Vehicle Plant in China Amid Sales Decline

Credit: Dongfeng Honda

Honda has commenced operations at its first new energy vehicle (NEV) plant in China, responding to a notable decrease in sales within the world’s largest automotive market. The new facility, located in Wuhan, Hubei province, is operated by Dongfeng Honda, Honda’s joint venture with Dongfeng Motor. The announcement was made today, coinciding with the plant’s opening on October 11.

Situated in the Wuhan Economic and Technological Development Zone, the plant spans approximately 630,000 square meters and boasts an annual production capacity of 120,000 vehicles. The initial output will focus on several electric vehicle (EV) models, including the Lingxi L and the Ye S7. The Lingxi L, which is the first EV model from the Lingxi sub-brand of Dongfeng Honda, officially launched on September 27. The Ye brand was introduced by Honda in China in April 2024.

Honda stated that the opening of this plant signifies a significant advancement in Dongfeng Honda’s transition toward electrification and intelligent vehicle technologies. This milestone is critical for the brand’s strategic transformation within the Chinese market.

To bolster its electrification strategy, Honda plans to introduce a battery electric vehicle (BEV) lineup of 10 models by 2027, which will include the e:N series launched in 2022 and the new Ye series set for release in 2024. The automaker aims for all Honda models sold in China to be BEVs by 2035.

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