Honda to Shut Down Two Internal Combustion Engine Vehicle Plants in China

[Capacity Adjustment] Honda plans to shut down one internal combustion engine (ICE) vehicle plant each at GAC Honda and Dongfeng Honda in June 2026 and 2027, respectively.

Core Development: Annual Production Capacity in China to Shrink to 720,000 Units

After GAC Honda and Dongfeng Honda jointly close two ICE vehicle plants, Honda’s total annual production capacity in China will drop from 1.2 million units to 720,000 units—nearly halving from its peak of 1.49 million units at the beginning of 2024.

Strategic Rationale: Proactive Contraction in Response to Market Shifts

GAC Honda stated the move is aimed at “integrating resources and optimizing strategic layout in response to changing market conditions.” Dongfeng Honda temporarily claimed it has “no shutdown plans,” while Honda China has not issued a direct response. This adjustment highlights the strategic contraction pressures facing joint-venture brands amid the accelerating shift toward electrification.

Industry Impact: Accelerated Exit of Joint-Venture ICE Vehicles

As market demand increasingly shifts toward new energy vehicles, traditional joint-venture automakers are grappling with dual challenges of overcapacity and delayed transformation. Honda’s plant closures could serve as an industry bellwether.