Honda Motor Co. announced that it will close a plant in China and suspend vehicle production at another plant in the face of fierce competition in China's electric vehicle market. It will also speed up the adjustment of China's production layout in the following period to better adapt to market demand and accelerate electric vehicle production.
Specifically, Honda will close one of its joint venture plants with GAC Group, which is expected to close in October. Then in November, Honda will suspend one of its joint venture plants with Dongfeng, which has an annual production capacity of 240,000 vehicles.
In response to this matter, GAC Honda stated that it recently released the "Yunxin Zhiyuan" corporate strategic transformation plan, and is committed to building a "smarter, greener and more efficient" GAC Honda.
GAC Honda said that the company currently has four complete vehicle production lines (annual production capacity of 770,000 units) and one production line under construction (designed annual production capacity of 120,000 units). Among them, the fourth production line with an annual production 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.
Honda plans to produce electric vehicles in its joint venture with Dongfeng to make up for the reduced production capacity. Honda aims to start production at two joint ventures between GAC and Dongfeng later this year, and the production capacity is expected to return to 1.44 million vehicles.
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