Honda will halt vehicle production at its factory in Ayutthaya province in Thailand by 2025 as it plans to consolidate its output under the plant it runs in Prachinburi province, the Japanese carmaker said on Tuesday.
The move highlights the tougher conditions Japan's second-biggest carmaker faces in the southeast Asian nation as Chinese brands aggressively seek to gain market share in Thailand and consumer demand for electric vehicles grows.
Honda plans to produce car parts at the Ayutthaya plant opened in 1996 when it stops making vehicles there next year, a company spokesperson said.
It will consolidate vehicle production at the Prachinburi plant opened in 2016, according to the spokesperson. The factories are the only two plants the carmaker has in Thailand.
Honda has seen the combined production at the plants fall from 228,000 vehicles in 2019 to under 150,000 a year for each of the four years through to 2023.
The company's sales in Thailand have been under 100,000 for each of the four years through to last year.
Honda hopes to get rid of the gap between vehicle production and sales it has seen in Thailand, according to the spokesperson.
The carmaker has already been exporting from Thailand, mainly to other southeast Asian markets such as Indonesia and the Philippines, the spokesperson said. Honda has no plans to make new investments in Thailand, the spokesperson added.
In China, Honda and rival Japanese carmaker Nissan have been hit specially hard by competition from rising Chinese brands, which have attracted consumers with low-priced, software-loaded EVs and plug-in hybrids.
Japanese carmakers face a risk of losing customers in markets outside of China, such as those in southeast Asia, to upstart Chinese brands that are increasingly looking to step up car exports and setting up factories overseas.
Last week, China's BYD opened a plant for battery-powered cars in Thailand that is part of a wave of investment worth more than $1.44bn (R26,061,192,000) from Chinese EV makers that are establishing factories in the country.
Honda to end vehicle production at one of its Thai plants
Image: Supplied
Honda will halt vehicle production at its factory in Ayutthaya province in Thailand by 2025 as it plans to consolidate its output under the plant it runs in Prachinburi province, the Japanese carmaker said on Tuesday.
The move highlights the tougher conditions Japan's second-biggest carmaker faces in the southeast Asian nation as Chinese brands aggressively seek to gain market share in Thailand and consumer demand for electric vehicles grows.
Honda plans to produce car parts at the Ayutthaya plant opened in 1996 when it stops making vehicles there next year, a company spokesperson said.
It will consolidate vehicle production at the Prachinburi plant opened in 2016, according to the spokesperson. The factories are the only two plants the carmaker has in Thailand.
Honda has seen the combined production at the plants fall from 228,000 vehicles in 2019 to under 150,000 a year for each of the four years through to 2023.
The company's sales in Thailand have been under 100,000 for each of the four years through to last year.
Honda hopes to get rid of the gap between vehicle production and sales it has seen in Thailand, according to the spokesperson.
The carmaker has already been exporting from Thailand, mainly to other southeast Asian markets such as Indonesia and the Philippines, the spokesperson said. Honda has no plans to make new investments in Thailand, the spokesperson added.
In China, Honda and rival Japanese carmaker Nissan have been hit specially hard by competition from rising Chinese brands, which have attracted consumers with low-priced, software-loaded EVs and plug-in hybrids.
Japanese carmakers face a risk of losing customers in markets outside of China, such as those in southeast Asia, to upstart Chinese brands that are increasingly looking to step up car exports and setting up factories overseas.
Last week, China's BYD opened a plant for battery-powered cars in Thailand that is part of a wave of investment worth more than $1.44bn (R26,061,192,000) from Chinese EV makers that are establishing factories in the country.
Nissan and Honda consider partnering on software, charging infrastructure
BYD opens EV factory in Thailand, first in Southeast Asia
Honda to start selling micro-sized electric vans in October
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Most read
Latest Videos