(Yicai) April 27 -- Honda Motor has adjusted its research and development approach in China, with the Japanese auto giant's local joint venture partners GAC Group and Dongfeng Motor Group taking over new car development to cope with competition from domestic brands and declining sales.

GAC and Dongfeng Motor will launch new models based on their respective electric platforms, while Honda will take part in product development and discussions on technology, patent integration, and other details, the Tokyo-based automaker announced recently.

Honda's China sales have declined for five straight years due to increasing competitive pressure brought by local automakers. The figure reached 645,300 units last year, down 24 percent year over year and 60 percent from a peak of 1.6 million units in 2020.

GAC Honda will lead the R&D of new energy products for the Chinese and global markets, instead of just introducing Honda models in China, Lin Zhibin, deputy general manager of the JV, told Yicai at the ongoing Beijing International Automotive Exhibition.

Because of the sluggish sales, Honda plans to shut down two of its four fuel car factories in China during this year and next year, reducing its local annual production capacity to 720,000 units from 1.2 million units, Japanese media Toyo Keizai reported.

GAC Honda is undergoing a strategic transition by optimizing its capacity, production lines, and tech layout, Lin pointed out, adding that the adjustment at the fuel vehicle plant in Guangzhou is to eliminate inefficient capacity and meet future new products and tech production needs.

After hibernating this year, GAC Honda will launch three new models covering fuel, hybrid, and new energy vehicles next year, including a self-developed model based on the Chinese new energy platform, Lin said.

GAC Honda will also actively cooperate with Chinese firms, including tech giant Huawei Technologies and intelligent driving chip developer Momenta, to make up for shortcomings in intelligence tech and better integrate into the local market, it pointed out.

Editors: Dou Shicong, Martin Kadiev