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In response to the burgeoning demand for electric vehicles (EVs) in China, Honda is set to restructure its production capacity. According to reports, Honda will shut down one production line at its Dongfeng Honda plant in Guangdong, resulting in a 50% reduction in the plant's annual production capacity to 260,000 units. Concurrently, the company will halve its engine production capacity. This shift comes amidst a steep 30% decline in Honda's gasoline vehicle sales in China in 2024, marking the first time sales have fallen below one million units. To expedite its transition to electrification, Honda has already inaugurated its first EV plant and intends to establish another, with a combined annual production capacity of 240,000 EVs across both new facilities.
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