Autobayng News Team
- Published On Apr 17, 2026 at 12:29 PM IST
Honda has struggled in China to compete with electric, software-driven cars made by rivals such as BYD.“>
Honda Motor will shut two internal combustion engine car plants in China and slash annual production capacity in the country to 720,000 vehicles, Japanese magazine Toyo Keizai reported on Friday.
Japan’s second-biggest automaker will shut a plant jointly operated with Guangzhou Automobile Group in June and another one owned with Dongfeng Motor Group next year, the magazine said.
Honda did not immediately respond to a request for comment.
The reported move comes after Honda said last month that it was writing down the value of its China business as part of a broader overhaul of its electric vehicle strategy that includes up to $15.7 billion in restructuring costs.
The charges are expected to lead the automaker to its first annual loss in nearly 70 years as a listed company. Honda has struggled in China to compete with electric, software-driven cars made by rivals such as BYD.
Its sales in the country fell about 24 per cent in 2025 from a year earlier to just under 647,000 vehicles.
Honda shares were last up 0.4 per cent, outperforming a 0.8 per cent decline in the Nikkei benchmark index.
- Published On Apr 17, 2026 at 12:29 PM IST
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