Guangzhou Automobile Honda responds to rumors that it will close two auto plants in China: it is a strategic transformation move

On July 26, Honda China announced today that in order to comply with industry trends and optimize resource allocation, the company is implementing a production capacity optimization plan aimed at accelerating the electric transformation. According to a statement released by Honda China, the company's production lines in China will undergo a series of adjustments. It is understood that Honda currently has 7 vehicle production lines in China, with a total annual production capacity of 1.49 million units. However, as market demand changes and the electrification trend advances, Honda has decided to close or adjust some production lines. Specifically, Guangqi Honda plans to shut down its fourth production line with an annual production capacity of 50,000 units in October 2024, while Dongfeng Honda plans to shut down its second production line with an annual production capacity of 240,000 units in November of the same year. After these adjustments, Honda's total automobile production capacity in China will be reduced from the existing 1.49 million units to 1.2 million units.

According to the editor’s understanding, Honda’s move is not simply to reduce production capacity, but to accompany the strategic adjustment of electrification transformation. Currently, Honda is actively promoting the construction of electric vehicle production lines in China.

1. Dongfeng Honda’s new electric-only factory is expected to be officially put into production in September 2024.
2. Guangqi Honda’s new new energy plant is also scheduled to be put into operation in November of the same year.

The commissioning of these new factories will further enhance Honda’s ability to supply electrified products in the Chinese market.

Previously, some media reported on July 25 that Honda would close a factory in China and stop car production at another factory. This report is consistent with Honda's statement today, indicating Honda's determination to optimize production capacity and electrify the transformation in the Chinese market.

Honda’s reduction in gasoline vehicle production capacity in China accounts for about 10% of its global production, equivalent to about 500,000 vehicles. This scale of production reduction is unprecedented among Japanese car companies. Honda will reduce its annual production capacity of gasoline vehicles in China from 1.49 million units to 1 million units to adapt to market changes and consumer demand. Currently, the sales situation of Japanese cars in the Chinese market is not optimistic, and Honda's production cut also reflects the plight of Japanese cars in the Chinese market.
-->

The above is the detailed content of Guangzhou Automobile Honda responds to rumors that it will close two auto plants in China: it is a strategic transformation move. For more information, please follow other related articles on the PHP Chinese website!