Honda cutting China output
Honda plans to close at least one joint‑venture car plant in China this year and may shut another next year as it reduces petrol‑car production in the market. (reuters.com) At the same Shanghai show, Audi’s China strategy widened — the Audi‑SAIC partnership will produce multiple new models, including a sedan due in 2027 under that collaboration. (autocarindia.com) (just-auto.com)
Honda is cutting petrol-car capacity in China again, with one joint-venture plant set to stop this year and another under review for next year. (reuters.com) Reuters reported on April 17 that Honda plans to halt one Guangzhou Automobile Group plant in June 2026 and is considering suspending a Dongfeng Motor Group plant in 2027. Honda has six vehicle plants in China across the two ventures, and the move would cut annual petrol-car capacity to about 720,000 vehicles. (reuters.com) Honda said the report was not announced by the company and added that it had nothing further to say. The reported shutdowns follow earlier capacity cuts that had already reduced Honda’s annual China capacity from 1.49 million vehicles to 1.2 million. (reuters.com) The retreat comes after a steep sales slide in Honda’s biggest overseas market. Reuters reported Honda’s China sales fell about 24% in 2025 to just under 647,000 vehicles, down from more than 1.2 million in 2023. (reuters.com) China’s market has shifted fastest toward electric and software-heavy cars, and foreign joint-venture brands have lost ground to local groups that update models faster and price them more aggressively. Reuters identified BYD as one of the domestic rivals pressuring Honda’s legacy petrol operations. (reuters.com) Honda had already signaled a broader reset in March. The company said on March 12 that restructuring charges of up to $15.7 billion tied to its electric-vehicle strategy would push it toward its first annual loss in almost 70 years as a listed company. (reuters.com) At the same time, Audi is moving the other way in China by adding localized electric models with SAIC Motor. Reuters reported on April 17 that Audi and SAIC will jointly develop future generations under their China-only AUDI brand, with four models planned in the coming years. (reuters.com) That lineup is expanding beyond the E5 Sportback and the E7X sport utility vehicle. Autocar India and Just Auto reported that the third AUDI model will be a sedan due in 2027, aimed at the higher end of the market. (autocarindia.com) (just-auto.com) The contrast is now stark: Honda is shrinking combustion-engine output in China while Audi is widening a China-specific electric partnership. The next test is whether foreign carmakers can still win share there by building more local products, faster. (reuters.com 1) (reuters.com 2)
