Honda Closes Its Chinese Plant As Its Focuses On EVs In That Region

Japan’s Honda Motor will close a plant in China and halt vehicle production at another plant, the automaker said, as it seeks to start producing more electric vehicles amid stiff competition from Chinese brands.

Honda will close a plant it operates through its joint venture (JV) with China’s state-owned carmaker Guangzhou Automobile Group in October, a company spokesman said.

Honda makes the Accord sedan model in a factory that has been open for almost two decades and has an annual production capacity of 50,000 vehicles.

Honda will pause production at another plant in China that operates through a separate joint venture with Dongfeng from November, the spokesman said, adding that the plant has an annual production capacity of 240,000 vehicles.

Honda is seeking to optimize its production in China with the changes, adding that it faces difficult conditions in the Chinese car market, the world’s largest.

The company’s annual production capacity in China will be reduced to 1.2 million vehicles from 1.49 million as a result of the shutdown, a company representative added.

Honda plans to return to 1.44 million vehicles by starting production at two electric vehicle plants it is currently building through its joint ventures with GAC and Dongfeng. The company plans to start production at both new factories later this year.

• Also See: Honda And Sony Set To Deliver First Electric Vehicle In 2026