Honda Thailand to halve auto production amid China competition
Japanese automaker Honda Motor has announced it will cut production capacity in Thailand by 50%, citing fierce competition from Chinese counterparts.
Honda has two car assembly plants in Thailand.
The Ayutthaya plant will stop auto production by the end of next year and switch to making auto parts, NHK World Japan reported on Wednesday.
The move will reduce Honda's production capacity in Thailand from 270,000 vehicles per year to 120,000, the report said. It added that company executives do not expect a rebound in sales.
Honda’s plant in Prachinburi province will continue to assemble cars after next year, focusing on electric vehicles.
Honda launched its Thai manufacturing base in 1992, reaching a peak of over 270,000 vehicles in 2013. However, production dropped to about 140,000 last year.
Japanese automakers account for nearly 80% of vehicle sales in Thailand but Chinese EV giants like BYD are eating into their market share, the report said.
Japanese manufacturer Suzuki Motor has announced it will shut down its subsidiary's auto factory in Thailand by the end of 2025. Subaru also plans to stop production in the country, the Southeast Asian production hub for Japanese automakers.
Honda Automobile (Thailand)’s revenue and profit plunged from 2019 to 2021 but have gradually recovered since then, according to the Department of Business Development.
In 2023, its revenue rose 4.57% year on year to 158.45 billion baht while profit jumped 17.63% to 5.89 billion baht.
