Chinese automaker Dongfeng Motor Group plans to sell its 50% stake in its joint venture with Japan’s Honda Motor, according to a filing published on the Guangdong United Property Rights Exchange.
The state-owned Dongfeng Motor has listed its 50% stake in the Dongfeng Honda Engine joint venture, which manufactures combustion engines for Honda vehicles in China, for sale. The offering was posted on the Guangdong United Assets and Equity Exchange on Monday, with bids accepted until 12 September, as reported by Electrive. However, the exchange has not yet specified a minimum price, leaving the financial implications of the sale uncertain.
Dongfeng stated that the move aims to optimize its traditional fuel vehicle portfolio and to accelerate the reallocation of capital and resources toward the new energy sector.
Dongfeng Honda Engine, which has been producing engines for Honda vehicles in China since 1998 at its Guangzhou facility, is currently operating at a loss and reported a deficit of ¥227.8 million last year. According to the listing on the stock exchange website, the company is also carrying a debt load of ¥3.3 billion.
Japanese media reports indicate that Honda cut the production capacity of the engine facility by 50% earlier this year.
Dongfeng, which also partners with Nissan, sold only 1.5 million vehicles last year, a sharp drop from 3.8 million units in 2016. By exiting the joint venture with Honda, Dongfeng is shedding another segment of its combustion engine operations. However, collaboration between the two companies continues in other areas. In October 2024, Honda and Dongfeng inaugurated a new energy vehicle plant in Wuhan with an annual production capacity of 120,000 units.
Honda also plans to introduce ten electric models in China by 2027, including offerings from its e:N series.
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