March 11, 2025 – According to a report by Nikkei today, Honda’s engine factory in Guangzhou will halve its production capacity. This plant accounts for approximately 30% of Honda’s fuel vehicle engine output sold in China. The report indicates that the rapid growth of the electric vehicle (EV) market, driven by intensifying competition from local Chinese automotive brands, has posed challenges for Honda. The company, which has lagged in the EV sector, is now accelerating structural reforms.
Japanese automakers such as Toyota and Nissan are also facing difficulties in the Chinese market, with Nissan already reducing its production capacity. However, Honda’s production cut stands out as the largest among Japanese car companies.
Notably, in December of last year, Guangqi Honda announced the commissioning of a new energy vehicle plant in its development zone. Reports suggest that this plant has a designed capacity of 120,000 vehicles per year and has achieved “zero-carbon” status upon commencing operations.
