Dongfeng Motor Group Plans to Sell 50% Stake in Dongfeng Honda Engine Co.

The project is currently in the pre-listing stage with the transfer base price pending, and the listing period closes on September 12.

As of the first half of 2025, the company turned profitable with a net profit of RMB 371 million ($50.7 million)—its highest performance in recent years.

On August 18, the official website of Guangdong United Property Rights Exchange disclosed that Dongfeng Motor Group Co., Ltd. plans to sell its 50% equity stake in Dongfeng Honda Engine Co., Ltd. The project is currently in the pre-listing stage with the transfer base price pending, and the listing period closes on September 12.

This transaction marks a critical step in Dongfeng Group’s ongoing efforts to advance its new energy strategy.

A screenshot of an official disclosure regarding Dongfeng Honda Engine Co., Ltd. detailing the sale of a 50% equity stake, with information on the project code, transfer base price, and listing period. — The information publicized on the official website of the Guangdong United Assets and Equity Exchange Center.

Public records show that Dongfeng Honda Engine Co., Ltd., headquartered in Guangzhou’s Huangpu District, primarily supplies engines and components to GAC Honda. The current equity structure comprises Dongfeng Group (50%), Honda Motor Co., Ltd. (40%), and Honda Motor (China) Investment Co., Ltd. (10%).

Financially, the company shifted to profitability in the first half of 2025, posting a net profit of $50.7 million—its highest performance in recent years.

If successfully closed, this would represent Dongfeng Group’s second major asset restructuring since its 2022 divestment of Stellantis shares, which generated over CNY 10 billion in proceeds.

A document displaying corporate information, financial data, and statistics related to Dongfeng Honda Engine Co., Ltd., including details about its ownership structure, operational status, and projected profits. — Brief Introduction of the Target Enterprise

Notably, Dongfeng Group stated in its announcement that the equity sale aims to systematically optimize its fuel vehicle asset structure and accelerate the reallocation of capital and resources toward the new energy sector.

The rationale behind this move is clear: despite recent profitability improvements at Dongfeng Honda Engine, R&D for traditional fuel powertrains and market demand face long-term contraction. Divesting such assets avoids future sunk costs from technological transitions, while freeing up capital to bolster independent R&D in new energy technologies and expand production capacity.

Furthermore, with China’s new energy vehicle penetration rate exceeding 50%, Dongfeng’s “Dongfeng Rising” plan targets annual new energy vehicle sales of 1 million units by 2025. This transaction underscores the Group’s resolute commitment to strategic transformation.