Guangzhou Auto takes 50% stake in motorbike manufacturer

Guangzhou Auto | Ash | January 4, 2011 at 2:01 pm

China’s motorbike manufacturers are itching to become car manufacturers, car manufacturers seem to be itching to become bike manufacturers – enter Guangzhou Auto. Guangzhou Auto spent 30.96 million RMB on buying a 50% stake in WuYang-Honda, a joint venture company between Wuyang Motorbike and Honda’s motorbike division.

Wuyang-Honda Motors Guangzhou has registered capital of 30 million US dollars and is owned by the Guangzhou Motorycle Group Corporation (GMCC). GMCC has a 50% stake in Wuyang-Honda, Honda Motors has a 40% share and Honda Motor China Investment has a 10% share.

Whilst Guangzhou Auto has taken just a 50% share of Wuyang-Honda, it plans to completely take over the company soon due to government regulation which will see GMCC pushed from the scene. Wuyang-Honda had a net asset value of 1.73 billion RMB in 2009 and generated an after tax profit of 140 million yuan in the first 11 months of 2010 which makes it a smart company for Guangzhou Auto to invest in.

Guangzhou Auto along with Honda Motor and Honda Motor China Investment are planning to invest 130 million RMB into the motorbike manufacturer and will produce a series of new motorbikes for the Chinese market, including several new

Ash

Ash came to China at 18 on a whim and never left. Some 10 years later he collected a degree and a family along the way and now focuses his time on watching the Chinese car industry develop. He has witnessed the market change from being minor backyard market in to the world's biggest and most important market for all car manufacturers. You can contact or connect with him via Linkedin by clicking the 'Website' link.