Honda Motor Co. will discontinue gasoline vehicle production at one of its four plants in China and may do so at another, a source close to the matter said Friday. The move is part of restructuring amid a shift in demand to electric vehicles in the world's largest auto market. The company aims to cut its annual gasoline vehicle capacity of 960,000 units there.
Honda Motor Co. will terminate gasoline vehicle output at a plant jointly operated with Guangzhou Automobile Group Co. in China, a source close to the matter said Friday. The company is also considering ending production at another joint venture plant with Dongfeng Motor Corp., while maintaining operations at two electric vehicle plants.
The beleaguered automaker plans to reduce its annual gasoline vehicle capacity in China from 960,000 units. It is revamping its EV operations and is expected to report a net loss for the fiscal year ended March 2026, the first since its 1957 listing.
Honda built 680,000 vehicles in China in 2025, a 16.4 percent decline amid intensifying price competition from local EV makers like BYD Co.
Sales in March stood at 36,000 vehicles, marking the 26th straight monthly drop and far below more than 150,000 in March 2021, as it lags behind Chinese rivals in new model launches.
