This is the scene in front of Honda’s China factory, where a massive number of unsold new cars are densely packed, creating a spectacular sight. Reportedly, Honda has hundreds of thousands of cars in inventory that cannot be sold, and the glory of their past sales success is gone.
In response, Japanese car brands have decided to cut production. On July 25, Honda announced that it will reduce its annual production capacity of gasoline cars in China by approximately 290,000 units, about 20% of its total capacity, due to sales difficulties. This is Honda’s first production cut in China, raising concerns about foreign companies withdrawing from the country.
Currently, Honda has seven automobile production lines in China, with a combined annual capacity of 1.49 million units. A Honda spokesperson stated that the joint ventures with GAC Group and Dongfeng Motor will cease operations in October and November this year.
Additionally, according to Nikkei Asia, another factory in Guangzhou may also close or suspend production. If this factory shuts down, China’s annual production capacity could further decrease by about 200,000 units.
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Honda Closes Two Factories in China, Accelerating Japanese Withdrawal and Increasing Unemployment
