(Yicai Global) Dec. 13 -- Honda Motor China Investment Co. penned a CNY60-million (USD9.1 million) agreement with an automotive technology firm yesterday to extend their electric vehicle ties by cooperating in car sharing.
The Honda unit and Neusoft Reach Automotive Technology Shanghai Co., a Neusoft Corp. [SHA:600718] division, struck the deal, under which Honda China will invest in and work with Ruichida New Energy Vehicle Technology Beijing Co., Neusoft’s car-sharing arm. After the capital injection, the new investor will hold a 10-percent stake in the car sharer. Neusoft Reach will hold the remainder.
Honda Motor Co. [TYO:7267; NYSE:HMC] expects its sales volume in China to surpass 1.4 million units this year, more than double the number from five years ago, said Mizuno Yasuhide, president of the China investment unit. The Chinese division also plans to release its first electric vehicle next year, which will be exclusive to the country.
The automaker made 1.3 million sales over the first 11 months, up 16.6 percent on the year. It attributes the fast China growth to small-displacement turbochargers, the consolidation of the sports-utility vehicle market and the release of an exclusive car in the country. Its Accord and Civic models both performed well, Yasuhide said, adding that Honda will face new challenges by importing technology and new products next year.