9MARCH, 2025ASIAMANUFACTURINGREVIEW.COMHONDA TO REDUCE ENGINE PRODUCTION CAPACITY BY HALF TO FOCUS ON EVSGODREJ CONSUMER INAUGURATES MODERN GREENFIELD FACILITY IN CHENNAIHonda Motor Co. is planning to reduce its engine production capacity by half in a plant located in southern Chinese city Guangzhou. The decision is a result to cope up with the rapid shift of the country towards EV (Electronic Vehicle).At present the factory located in Guangzhou is capable of producing 5,20,000 engines a year but it will soon cut down its production to half. It will reduce the engine manufacturing line from two to one at the Guangzhou factory of Dongfeng Honda Engine Co. by the end of this month, said the officials of the automaker. This transformation is the result of people in china preferring electric cars instead of gasoline powered cars. The company's sale in the country has dropped by 30% from the previous year to 8,50,000 units in 2024 which is the lowest in 10 years. It was the first time in 10 years that the company has sold less than 1 million cars in the country.In order to adjust with the customer and evolving market needs, Honda has already shut down or suspended operation at three of its seven factories in the country since last year. Honda is also prioritizing its manufacturing strategy to stay competitive in the market. On Monday, Tamil Nadu Chief Minister M. K. Stalin inaugurated Godrej Consumer Products' first integrated greenfield plant on OMR in Chengalpet. The facility comes with an investment of Rs 515 crore in OneHub Chennai Park, and will manufacture soaps, hair colours, electric mosquito repellents and air fresheners, among others.In his address, Stalin said that GCPL joins the ranks of several other FMCG companies including Britannia, Dabur and ITC, which have Production projects in the state."The foundation stone was laid in the Global Investors Meet in January, 2024, just five months after the MoU was signed in August of the same year. Within a year's time, the plant has been inaugurated. This is a clear example that our government has been, post-MoU signing, diligent in the execution of any project," he said. He highlighted consumer products in Tamil Nadu as having a huge possibility to scale up and be competitive, which will only grow in the future. Given Tamil Nadu's status as one of the most urbanized states in India, it remains an important market for many companies."We are trying our best to reduce imports and to increase domestic production. Tamil Nadu, which serves as the gateway for investments into India, is also the most ideal state for investments in Southeast Asia," said Stalin.The chief minister has praised the move of reserving jobs for 50% of women and representation for persons with disabilities and transgender communities in the facility.State industries minister TRB Rajaa said the setup would cater to products meant for India and against the world. "This is an advanced manufacturing facility focusing on sustainability. It will be a lighthouse factory using Industry 4.0 techniques," he added.
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