Honda to shut two plants in China jointly owned with GAC, Dongfeng, says magazine

• Reuters

• 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.

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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.