Honda to Close Two China Plants and Cut Production Capacity
Honda will close two internal combustion engine plants in China to reduce annual capacity to 720,000 units. One factory closes in June and the other next year.
HONDA MOTOR CO LTD is set to significantly scale back its manufacturing operations in China by closing two major assembly plants. According to reports from the Japan based publication Toyo Keizai, the move will involve a substantial reduction in the automaker's annual production capacity, bringing it down to 720,000 vehicles.
The restructuring focuses on facilities dedicated to internal combustion engine car production. One of the plants being decommissioned is a joint venture with GUANGZHOU AUTOMOBILE GROUP-H, which is expected to stop production in June. Additionally, a second facility operated in partnership with DONGFENG MOTOR GRP CO LTD-H is scheduled for closure next year.
Honda's decision reflects a broader shift in the regional automotive market as manufacturers navigate changing demand and a transition toward new energy vehicles. By streamlining its traditional engine production, the company aims to optimize its remaining capacity in the world's largest car market.
