On October 11, Japanese automaker Honda Motor opened its first dedicated new energy vehicle factory in Wuhan, Hubei Province, China.
The move is aimed at boosting electric vehicle production as Honda plans to make all new vehicles sold in the country electric by 2035.
The plant is operated by Dongfeng Honda, a joint venture between the Japanese automaker and China’s state-owned Dongfeng Motor. The joint venture has invested about $566 million in the plant, which is expected to have an annual capacity of about 120,000 vehicles and employ about 800 people. The plant will begin production of the Lingxi L electric vehicle, which went on sale in late September.
Speaking at the opening ceremony, Honda CEO Toshihiro Mibe said: “Honda will operate this new plant smoothly and stably, and provide high-quality electric vehicles to customers in China.”
The new factory features a high level of automation in the assembly process. The installation of multi-storey automated warehouses and automation of spare parts logistics has reduced the number of personnel to “zero” in some stages.
Japanese automakers have been slow to adapt to China’s rapidly changing EV market. Honda plans to start operating another EV plant under GAC Honda, a joint venture with Chinese state-owned automaker GAC Group, later this year.