(Yicai) Aug. 19 -- Chinese carmaker Dongfeng Motor has listed its 50 percent stake in Dongfeng Honda Engine, its joint venture with the Japanese auto giant, for sale to accelerate its new energy vehicle shift.

Dongfeng Motor has not yet set a reserve price, with the listing deadline being Sept. 12, according to an announcement on the website of the Guangdong United Assets and Equity Exchange published yesterday.

Honda Motor holds a 40 percent stake in Dongfeng Honda Engine, while Honda Motor China Investment owns the rest. 

Chinese and JV carmakers face increasing challenges as China's NEV market continues to grow, Wuhan-based Dongfeng Motor noted, adding that it aims to optimize and adjust its internal combustion engine asset structure to better support Honda's expansion in the country while accelerating its shift to NEVs.

Established in 1998 in Guangzhou, Dongfeng Honda Engine swung into the black with a net profit of CNY371 million (USD51.6 million) in the first half of this year, despite its revenue plunging 60 percent to CNY3.8 billion (USD532 million) from a year ago. Its headcount is 827 workers.

Dongfeng Motor faces less pressure on NEV profitability due to separate evaluations of NEV operations for three central state-owned carmakers, a spokesperson for the company told Yicai. This allows the firm to allocate more resources to its independent NEV business, pursue bold innovations in its operational framework, and assist the electrification of its JVs, the person added.

Dongfeng Motor considers its role in the development of Dongfeng Honda Engine to be largely completed, the spokesperson pointed out.

Before the listing, market rumors suggested that GAC Honda, the Japanese automaker's China JV with GAC Group, might buy the 50 percent stake in Dongfeng Honda Engine. A spokesperson for Honda China told Cailianshe yesterday that "only officially disclosed information is available."

GAC Honda's sales dropped 26 percent to 154,647 units in the six months ended June 30 from a year earlier, while those of Dongfeng Honda tumbled 37 percent to 148,990 units. Last year, Honda China's sales fell 31 percent to 852,300 units from the previous year, closing its Guangzhou and Wuhan JV factories, reducing its annual combustion car production capacity to 1 million units from 1.49 million.

Dongfeng Motor expects its net profit to have plunged 90 percent to 95 percent to between CNY30 million and CNY70 million (USD4.2 million and USD9.8 million) in the first half of this year from a year earlier.

Editor: Martin Kadiev