Honda to shut two China plants
Honda plans to close two internal‑combustion engine plants in China that it jointly operates with GAC and Dongfeng, a move Reuters says will reduce annual production capacity in the country to about 720,000 vehicles. (reuters.com)
Honda is closing two gasoline-car plants in China as it cuts back in the world’s biggest auto market. (reuters.com) Reuters reported on April 17 that Honda will shut a plant with Guangzhou Automobile Group in June 2026 and another with Dongfeng Motor Group in 2027, citing Toyo Keizai and people familiar with the plan. The cuts would lower Honda’s annual vehicle capacity in China to about 720,000 units. (reuters.com) Honda has six vehicle plants in China across its two joint ventures. Reuters said the two internal-combustion plants being targeted each have capacity of 240,000 vehicles a year, which would halve Honda’s gasoline-car capacity there from 960,000 to 480,000 units. (reuters.com) The retrenchment follows a sharp sales slide. Honda said its China vehicle sales fell 30.9% in 2024 to 852,269 units, down from more than 1 million a year earlier. (honda.com.cn) Honda’s own monthly data show it produced 682,289 vehicles in China in 2025. That left its factories running well below the 1.2 million units of annual capacity Reuters said Honda had before these planned closures. (global.honda, reuters.com) Chinese brands have been taking share with cheaper electric vehicles and faster software updates, squeezing foreign carmakers that built their China business around gasoline models. Reuters said Honda’s March 2026 writedown of its electric-vehicle business also highlighted pressure from a widening technology gap in China. (reuters.com, reuters.com) Honda has been in China for decades through Guangqi Honda Automobile and Dongfeng Honda Automobile. Honda’s 2025 China fact book lists Guangqi Honda automobile production starting in 1999 and Dongfeng Honda automobile production starting in 2004. (hondanews.com) Honda said the reported plant plans were not announced by the company and did not add further comment, according to Reuters. GAC and Dongfeng did not immediately respond to Reuters requests for comment. (reuters.com) The immediate effect is simpler than the strategy talk: Honda is shrinking gasoline-car capacity in China to match weaker demand, while it tries to rebuild around electric models. (reuters.com, reuters.com)
