Honda Electric motor Firm verified it plans to reduce its engine production capability in China, as it faces increasing overcapacity due to magnifying competitors from regional makers and dropping demand for internal combustion engine (ICE) vehicles in the nation.
The Japanese automaker stated it will certainly close one of both engine assembly line at its Dongfeng Honda Engine Company joint venture in Guangzhou in southern China at the end of March, as it changes its emphasis to creating battery electrical automobiles (BEVs) for the neighborhood market and for export. Engine production capacity at the plant will certainly be cut in half to 260,000 units per year, from 520,000 currently.
A representative from the business confirmed that the reduction in ability would certainly match about 30% of the vehicle maker’s sales of gasoline-fueled automobiles in the area. Honda recorded a 31% decrease in car sales in China in 2024, reaching a ten-year low point of 852,000 units. Last year, the firm went through significant reconstruction in the location, resulting in the closure or momentary suspension of operations at 3 centers in Guangzhou and Wuhan.
A short article labelled “Honda to reduce engine production ability in China” was first created and released by Simply Automobile, a subsidiary of GlobalData.