Honda To Reduce Gasoline Vehicle Production Capacity By 20% in China, Closing Or Suspending Some Local Plants
Jul 25, 2024
Honda has announced that it will reduce its gasoline vehicle production capacity in China, its largest production base, by approximately 20% through plant closures and other measures.
Honda currently has seven plants in China that are joint ventures with local companies, with a combined annual production capacity of approximately 1.5 million gasoline vehicles.
The Guangdong plant, which has a production capacity of 50,000 units, will be closed in October, and the Hubei plant, which has a production capacity of 240,000 units, will also be suspended in November.
As a result, the company will reduce its gasoline vehicle production capacity in China by about 20%.
On the other hand, Honda plans to start operations of two plants dedicated to EVs (electric vehicles) that can produce 240,000 units a year by the end of this year, resulting in an overall reduction in production capacity of 50,000 units.
Japanese manufacturers continue to struggle in the ongoing shift to EVs in China, the world's largest market, with Mitsubishi Motors already deciding to withdraw from the market.
