According to reports, Honda will cut 30% of its gasoline vehicle production capacity in China, the world's largest auto market. Honda plans to close factories and other measures,Cutting production capacity by about 500,000 vehicles, equivalent to 10% of Honda's global production.Currently, Honda has seven gasoline vehicle factories in the Chinese market, with an annual production capacity of about 1.49 million vehicles. Honda plans to reduce this to 1 million vehicles, which is close to 500,000 vehicles, which is equivalent to 1/3 of China's production capacity.
According to the plan, the factory in Guangzhou, Guangdong Province will close in October, the factory in Wuhan, Hubei Province will cease production starting in November, and another factory in Guangzhou will also close or suspend production later.
The report pointed out that Honda has been increasing production investment in China since the 1990s.Honda's production cut this time is Honda China's first production cut, which will also be the largest reduction among Japanese car companies.
In fact, Honda has shown weak sales in the country for many years.
The data shows,From January to June this year, Honda’s cumulative sales of terminal vehicles in China were 415,906 units, a year-on-year decrease of 21.5%.
In terms of brands, Dongfeng Honda's annual sales in 2023 will exceed 610,000 vehicles, which has been a decline in sales for three consecutive years; while Guangqi Honda's annual sales in 2023 will exceed 640,000, a year-on-year decrease of about 13.5%.
At present, the penetration rate of domestic new energy vehicles is getting higher and higher, and Honda China has not launched a hot new energy model. If this situation does not change as soon as possible, the decline in sales may still be difficult to reverse in a short time.