According to the official website of Guangdong United Property Rights Exchange Center on August 18th, Dongfeng Motor Group Co., Ltd. (hereinafter referred to as “Dongfeng Motor Group”) intends to sell a 50% stake in Dongfeng Honda Engine Co., Ltd. The listing period runs from August 18th to September 12th, and the project is currently in the pre-listing stage with the transfer price to be determined. As of press time, the project has attracted 642 views.
According to the announcement, Dongfeng Honda Engine Co., Ltd. was established in May 1998, with its registered address at No. 111, Guangben Road, Hengsha, Huangpu District, Guangzhou. Both its registered capital and paid-in capital are USD 121.583517 million, and its legal representative is Cui Zhifeng. It is an enterprise mainly engaged in the automobile manufacturing industry, with business scope covering the production of auto parts and components (including automobile engine manufacturing), employing a total of 827 employees. In terms of financial performance, the announcement shows that Dongfeng Honda Engine Co., Ltd. achieved operating income of 9.566 billion yuan in 2024, with a net profit of approximately -228 million yuan; in the first half of this year, its operating income was 3.807 billion yuan, and its net profit turned around to 371 million yuan.
Currently, the company is jointly owned by three entities: Dongfeng Motor Group Co., Ltd., Honda Motor Co., Ltd., and Honda Motor (China) Investment Co., Ltd., with shareholding ratios of 50%, 40%, and 10% respectively. That is to say, Dongfeng Motor Group Co., Ltd. is the largest shareholder. If it sells its 50% stake in Dongfeng Honda Engine Co., Ltd., it will completely withdraw from the company upon completion of the transfer.
As of press time, the reason behind Dongfeng Motor Group’s plan to sell the 50% stake in Dongfeng Honda Engine Co., Ltd. remains unclear, and neither Dongfeng Motor Group nor Dongfeng Honda Engine Co., Ltd. has responded to the news. Industry insiders believe that Dongfeng Group’s move to sell the stake may be aimed at optimizing and adjusting its fuel vehicle asset structure to accelerate the transition to new energy vehicles.
At present, Dongfeng Motor Group has established joint venture brands such as Dongfeng Motor Co., Ltd., Dongfeng Honda, and Dongfeng Peugeot-Citroën Automobile through joint ventures and cooperation with many internationally renowned automobile brands. Its independent brands include Dongfeng Passenger Vehicles, M-Hero Technology, Dongfeng Voyah, and Dongfeng Liuzhou Motor. Official data shows that in the first half of 2025, Dongfeng Motor Group’s cumulative sales volume was 823,900 units, a year-on-year decrease of 14.7%. Among them, cumulative sales of new energy vehicles reached 204,400 units, a year-on-year increase of 33.0%.
In terms of brand breakdown, in the first half of the year, cumulative sales of Dongfeng Nissan (including Dongfeng Infiniti and Venucia) were 252,800 units, a year-on-year decrease of 23.5%; sales of another Japanese joint venture brand, Dongfeng Honda, reached 149,000 units, a year-on-year decrease of 37.4%. Beyond Dongfeng Nissan and Dongfeng Honda, sales of another joint venture brand, Dongfeng Peugeot-Citroën, also remained sluggish, with cumulative sales of 27,000 units in the first half of the year, a year-on-year decrease of 28.3%.
In the independent brand sector, cumulative sales of Dongfeng Liuzhou Motor in the first half of the year were 52,700 units, a year-on-year decrease of 15.1%; sales of Dongfeng Passenger Vehicles, part of the independent sector, reached 104,800 units, a year-on-year increase of 23.0%; and Voyah Automobile achieved cumulative sales of 56,100 units, a year-on-year increase of 84.8%.
The sluggish sales of joint venture brands have directly dragged down Dongfeng Motor Group’s overall performance. On August 7th, Dongfeng Motor Group released a “Profit Warning” announcement stating that in the first half of 2025, its net profit attributable to shareholders is expected to be 30 million yuan to 70 million yuan, a year-on-year decrease of 90% to 95%. Regarding the reasons for the performance change, Dongfeng Motor Group stated that the main factor is the continuous decline in the market for joint venture non-luxury brands, leading to a significant drop in sales and profits of joint venture passenger vehicle businesses. In addition, to cope with fierce market competition, the company has increased investment in research and development, brand building, channel construction, and marketing in the independent business sector.
Today, the automotive industry is evolving rapidly. In the current era of new energy vehicles, profound changes have occurred in China’s automotive consumer market. With the rapid rise of domestic independent brands and the general trend of new energy transition, consumers’ car-purchasing attitudes have begun to shift. This has severely squeezed the market share of once-leading joint venture brands, especially Japanese joint venture vehicles, whose market dividends have gradually faded. Traditional automakers like Dongfeng Motor Group are now facing this situation. For Dongfeng Motor Group, there is still much room for improvement and development in independent brands and new energy vehicles, which may become new growth drivers for its future sales. Facing the intense market competition in 2025, “how to more quickly develop independent brands and new energy vehicles, achieve sales recovery, and enhance market position” has become the most urgent task and top priority for Dongfeng Motor Group moving forward.
