Honda to Reduce Annual Automotive Production Capacity in China Significantly
TapTechNews August 8th news, according to Kyodo News, Honda Motor Company disclosed on August 7th that it plans to further reduce its annual automotive production capacity in China. This time, it will reduce by 200,000 units, and is currently coordinating on this matter.
Before this, Honda had already announced a reduction of 50,000 units in production capacity, bringing the total reduction to 250,000 units. The report points out that the reason for the production cut is that (Honda's) competition with local manufacturers has intensified, and sales have been sluggish. From January to July this year, Honda's cumulative sales of terminal vehicles in China was 468,473 units, a year-on-year decrease of 24.4%.
According to the plan, Honda's current annual production capacity of 1.49 million units in China is expected to drop to about 1.24 million units. Among them, Honda plans to reduce the existing production capacity mainly for gasoline vehicles by 490,000 units. On the other hand, the production capacity of the two pure electric vehicle factories that will start operation within the year will increase by 240,000 units.
In late July, many foreign media reported that Honda Motor announced it would close one factory in China and stop the vehicle production work in another factory. The production reduction situation mentioned in the report is that Honda will reduce the annual production capacity of gasoline vehicles in China from 1.49 million units to 1 million units.
On July 25th, the official WeChat account of GAC Honda announced the Yunxin Zhiyuan enterprise strategic transformation plan, claiming to be committed to creating a more intelligent, more green and more efficient GAC Honda. The fourth production line with an annual capacity of 50,000 units is planned to be closed in October 2024, and the new energy production line under construction will be put into production in November 2024.
According to TapTechNews' previous reports, the latest data shows that the sales of new vehicles of the three major Japanese automakers in China have all declined comprehensively in July. Among them, the sales of Toyota was 143,400 units, a year-on-year decrease of 6.1%; the sales of Honda was 52,567 units, a sharp year-on-year decrease of 41.4%; and the sales of Nissan was 47,102 units, a year-on-year decrease of 20.8%. What is more severe is that the sales of Toyota and Honda have decreased for six consecutive months, and Nissan has also decreased for four consecutive months.