Honda 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.