Honda to cut gasoline car production in China by 19%
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Honda Motor plans to start cutting production of gasoline cars in China by 19% from October 2024 as it transitions towards electrification.
The Japanese automaker told Bloomberg via email that it will halt one line at joint venture Dongfeng Honda, which has an annual production capacity of 240,000 units, starting November 2024.
In October, it also plans to shut down its GAC Honda Plant entirely, which can make 50,000 units annually.
A Honda spokesperson said, “The move is aimed at accelerating the steady shift to EVs and optimizing production capacity for sustainable growth of our four-wheel business in China.”
Honda’s production capacity in China is approximately 1.5 million units; with the latest move, this will decrease by 19%.
A previous report in the Nikkei Asia indicated that Honda plans to reduce its production capacity for gas-powered vehicles in China by about one-third.
Read more: EIB Global commits €73 million to accelerate the decarbonisation of the automotive industry
Japanese automakers have been facing challenges in China due to their underwhelming electric car options and fierce competition from local manufacturers like BYD Co. Additionally, Tesla Inc. vehicles, produced at the US automaker’s Shanghai factory, enjoy significant popularity in China.
Dongfeng Honda, which currently manufactures models like the Civic and Life, will start producing auto parts and conducting research. The production of these models will be moved to another facility within the country.
According to a company spokesperson, GAC Honda, which makes the Accord plug-in hybrid, will be repurposed as a warehouse and for other functions.
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