Honda in China Capacity Optimization and Electric Transformation

TapTechNews July 26th news, Honda China issued a document today stating that the company is implementing capacity optimization to accelerate the electric transformation.

TapTechNews learned that currently Honda has 7 automotive assembly lines in China, with a combined annual capacity of 1.49 million units. Guangqi Honda plans to close the fourth production line with an annual capacity of 50,000 units in October 2024. Dongfeng Honda plans to suspend production and rest the second production line with an annual capacity of 240,000 units in November 2024. After the adjustment, Honda's total automotive capacity in China changes from 1.49 million units to 1.2 million units.

Honda is further accelerating the electric transformation in China. The newly-built Dongfeng Honda all-new electric dedicated factory will be put into operation in September 2024, and the Guangqi Honda all-new new energy factory will be put into operation in November 2024.

On July 25th, it was reported that Honda announced that it will close one factory in China and stop the car production work in another factory.

Honda will reduce the capacity of gasoline vehicles by 30% in the largest automotive market in the world - China, and will reduce the capacity by about 500,000 units through measures such as closing factories, which is equivalent to 10% of Honda's global production. The report said that Honda will reduce the annual capacity of gasoline vehicles in China from 1.49 million units to 1 million units. Currently, Japanese cars are clearly in a sluggish situation in China, and Honda's production cut this time will set the largest record among Japanese automakers.