Honda Automobile (China) Co., Ltd., the first Chinese automaker to export 100 percent of its products, was established September 8, 2003. A joint venture with a 30-year term agreement, the company is composed of Honda Motor Co., Ltd., Honda Motor (China) Investment Co., Ltd., Guangzhou Automobile Group Co., Ltd. and Dongfeng Motor Group Co., Ltd. Honda Automobile (China) Co., Ltd. occupies 672,000 m2 lot, with weld, paint, engine assembly, vehicle assembly and vehicle inspection and other processes. The company introduced the most advanced production equipment consistent with Honda’s New Manufacturing System, together with precise manual operation by human beings realizing a high-efficiency and high-quality production line. The total investment and the registered capital investment is US$ 125 million and US$ 82 million respectively, with the production capacity of 50,000 cars per year. The establishment of Honda Automobile (China) Co., Ltd. is a new challenge for the Chinese automobile industry. It is expected to accelerate the progress of Chinese automobile industry’s globalization.