Updated 21:08 IST, July 26th 2024
Honda halted production and announced closure of China’s plant
Amid intensified competition from local Chinese auto manufacturers, Honda Motor has revealed plans to shut down one of its manufacturing plants in China.

Honda closes China plant: Honda Motor has revealed plans to shut down one of its manufacturing plants in China and halt its production at another facility, which has marked a strategic shift towards electric vehicles (EVs) amid intensified competition from local Chinese auto manufacturers.
According to a company spokesperson, the Japanese auto manufacturer will close a factory operated through its joint venture (JV) with Guangzhou Automobile Group in October. This plant has been in operation for nearly two decades and currently manufactures the Accord sedan with an annual capacity of 50,000 vehicles.
Additionally, Honda will temporarily halt its production at another plant in China, which is operated through a separate joint venture with Dongfeng, starting in November. This facility has an annual production capacity of 240,000 vehicles.
A spokesperson has highlighted a tough challenge in the world's largest auto market. He said, “ The decision aims to streamline Honda's production operations in China amidst challenging market conditions,”
Following these adjustments, Honda's annual production capacity in China will reduce from 1.49 million vehicles to 1.2 million vehicles. However, the auto manufacturer has plans to restore capacity to 1.44 million vehicles by commencing operations at two new EV manufacturing plants later this year, through partnerships with GAC and Dongfeng.
Chinese auto manufacturers have gained significant traction by offering competitively priced vehicles loaded with advanced software features, posing stiff competition to global brands like Honda and Nissan Motor in their historically strong Chinese market segments.
Earlier reports by Nikkei Business Daily have hinted at Honda's strategy to scale down its production capacity in China, which has reflected broader adjustments within the global automotive industry towards electrification and digitalisation.
In March, Honda and Nissan had signaled their intent to explore strategic collaborations in EV component production and automotive AI software platforms, which had highlighted their efforts to bolster their competitive edge amid evolving market dynamics.
(with Reuters input)
Published 21:08 IST, July 26th 2024