Honda Thailand to Halve Auto Production
Honda plans to halve its auto production in Thailand due to rising competition from Chinese electric vehicle makers. The Ayutthaya plant will stop car production by the end of next year, shifting to auto parts manufacturing and reducing Honda's capacity from 270,000 to 120,000 vehicles annually. The Prachinburi plant will continue focusing on electric vehicles.
Honda plans to halve its auto production in Thailand in response to increasing competition from Chinese electric vehicle (EV) makers.
Moving forward, Honda's Ayutthaya plant, one of its two car assembly plants in Thailand, will cease auto production by the end of next year and shift focus to manufacturing auto parts.
This decision will reduce Honda's production capacity in Thailand from 270,000 vehicles per year to 120,000.
Meanwhile, the Prachinburi plant will continue to assemble cars, concentrating on electric vehicles.
Honda began its operations in Thailand in 1992 and peaked at over 270,000 vehicles in 2013.
However, production saw a significant drop to about 140,000 last year.
Japanese automakers dominate nearly 80% of vehicle sales in Thailand, yet Chinese EV makers like BYD are rapidly gaining market share.
Similarly, Suzuki Motor and Subaru have announced plans to cease auto production in Thailand by the end of 2025.
Moving forward, Honda's Ayutthaya plant, one of its two car assembly plants in Thailand, will cease auto production by the end of next year and shift focus to manufacturing auto parts.
This decision will reduce Honda's production capacity in Thailand from 270,000 vehicles per year to 120,000.
Meanwhile, the Prachinburi plant will continue to assemble cars, concentrating on electric vehicles.
Honda began its operations in Thailand in 1992 and peaked at over 270,000 vehicles in 2013.
However, production saw a significant drop to about 140,000 last year.
Japanese automakers dominate nearly 80% of vehicle sales in Thailand, yet Chinese EV makers like BYD are rapidly gaining market share.
Similarly, Suzuki Motor and Subaru have announced plans to cease auto production in Thailand by the end of 2025.
