Project InterviewTransforming Energy Management into a Proactive “Business”

Leading the energy management business across Honda Trading’s global network is Honda Trading (CHINA) Co., Ltd. (hereafter referred to as HTCH).
We spoke with local team members who are boldly tackling unprecedented projects to hear their current thoughts and future outlook.
Note: Information is as of March 2025.

From “Initiatives” to “Business” in Environmental Activities

– HTCH is gaining attention as a leader in the energy management business across Honda Trading’s global network. This seems to be driven by the rapid growth of the environmental business in China. What is your perspective on this growth?

Suzuki: I feel every day that China is truly a “pioneering country in environmental business.” The government has been advancing environmental initiatives from an early stage, which has led to the emergence and growth of many businesses aligned with this trend in the economic sector.

In the automotive industry, for example, over 50% of new car sales in China in 2024 are expected to be new energy vehicles (NEVs) such as EVs. Over the past five years, buses and motorcycles have also become increasingly electrified, significantly reducing emissions. I can even feel the improvement in air quality in urban areas.

Liu: On the other hand, competition in the environmental business is intensifying. Domestically, price competition among solar panel manufacturers has reportedly driven many companies into the red. This shows how environmental business has become a mainstream industry in the Chinese economy.

– Given the situation in China, what strategies is HTCH employing to expand its environmental business?

Suzuki: About three years ago, we established a cross-departmental task force for environmental business. Our goal is to contribute to Honda’s vision of achieving “carbon neutrality by 2050,” and we have drawn a concrete roadmap across the company. We have also restructured our internal systems, significantly changing the mindset on the ground.

What I consider crucial is how to establish environmental activities as a proactive “business.” Traditionally, corporate energy strategies have been seen as “initiatives” like energy conservation. However, when seriously looking toward 2050, such efforts alone will not suffice. Only by creating profitable businesses with high impact can we truly aim for a carbon-free society.

In China’s rapidly growing environmental business market, we are entering the growth phase—not as pioneers. However, this allows us to take a broader view of market trends and efficiently advance our business. By leveraging the domestic and international networks and customer trust we have built through our foundational businesses, we believe it is essential to act with speed.

Selling Electricity Generated: Honda Trading’s First Business Model

– The “Solar Power Generation and Electricity Sales Business,” launched in May 2023, was Honda Trading’s first such initiative. What was the aim of this project?

Suzuki: When considering environmental business, we found that our customers had strong needs for renewable energy in their electricity usage. We also saw potential for further expansion into energy-related businesses through renewable energy generation. That said, it was undoubtedly a significant challenge for us. Thanks to Liu’s leadership and swift action in launching the business and managing including its maintenance, the project has been running smoothly.

– What challenges did you face during the launch?

Liu: The biggest challenge was that none of us, including myself, had any prior knowledge of solar power. We had to start from scratch and learn the business. However, the most time-consuming part was designing the business model.

This is because “solar power generation and electricity sales” was an unprecedented business model for us. Instead of simply selling equipment, we purchased solar panels ourselves, installed them on the roofs of customer facilities, and sold the electricity they used—a model closer to finance business. We spent considerable time consulting with headquarters on the business structure and profitability, as well as addressing detailed adjustments like how to handle fixed assets.

Suzuki: We encountered many unforeseen challenges, but by solving them one by one, we were able to shape the scheme. I believe this initiative has opened new pathways within Honda Trading.

Establishing a Joint Venture with a Local Company: Full-Scale Entry into the “Energy Storage and Charging” Business

– In May 2024, you established a joint venture with a Chinese company and launched the “Energy Storage and Charging Business.” Can you tell us about the background of this initiative?

Suzuki: As I mentioned earlier, with the spread of EVs in China, the “energy management domain”—how to utilize vehicles equipped with batteries—is expanding. Specifically, this involves generating electricity with “solar power,” balancing supply and demand with “energy storage,” and using electricity through “chargers.”
From the beginning, we envisioned expanding into the “energy storage and charging business” centered on renewable energy like solar power. During this process, our vision aligned with Shinry, a Chinese company handling in-vehicle chargers with whom we had a relationship through our Parts business. This led to the establishment of the joint venture Xinben New Energy (Shenzhen) Co., Ltd.

– What are the features and strengths of this energy storage and charging business?

Suzuki: Shinry has advanced expertise and technology in charging and discharging, while HTCH has strong sales capabilities. Initially, we are focusing on selling rapid charging equipment and energy storage products. In the future, we aim to address societal challenges like reusing used batteries through demonstration experiments and explore further business opportunities such as Virtual Power Plants (VPP).

Liu: About a year after the joint venture’s establishment, we are currently focusing on sales activities. While competition in China’s energy storage market is fierce and the domestic economy has temporarily slowed, we are receiving inquiries and consultations. We aim to secure orders through steady sales efforts. In parallel with our activities in China, we are also working with Honda Trading Asia Co., Ltd. to explore expansion into other Asian locations.

Leading the Way in Energy to Remain Indispensable

– Finally, could you share your vision for HTCH’s energy management business and your thoughts on working on the frontlines of these projects?

Suzuki: Our immediate goal is to steadily grow our existing businesses, such as solar power generation and electricity sales, as well as energy storage and chargers. Beyond that, we aim to execute the environmental business roadmap and contribute to Honda’s environmental initiatives, ultimately helping to realize a sustainable society.

Liu: Even in China, where environmental business is advancing, energy management is still in a transitional phase. Many areas remain unexplored, and even with a solid strategy, results are not immediate. We face challenges daily, but I am committed to overcoming them one by one.

Suzuki: As Liu mentioned, it will take years for our energy management business to truly bear fruit. That is why it is crucial to lay the groundwork for the future as early as possible.

The mobility sector, which Honda Trading has been long focusing on, will undoubtedly undergo significant changes with time. To remain relevant in the market, we must quickly enter uncharted territories and accumulate solid knowledge and expertise in that area.

Globally, the environmental business is expanding, with China leading the way. That is why I believe it is essential to keep pace with the speed of this country, which we experience firsthand every day. The journey will be challenging and full of trials, but I am determined to lead Honda Trading’s energy management business from here in China.