On April 17, 2026, a report from the Japanese media outlet Toyo Keizai Online claimed that Honda Motor plans to shut down two of its internal combustion engine (ICE) vehicle plants in China. The move is reportedly aimed at addressing a sharp decline in sales and significant overcapacity in the region, a report that has quickly sent ripples through the automotive industry.
According to the report, Honda currently operates four ICE plants in China and intends to shutter two of them: the GAC Honda plant in Guangzhou is slated to cease production in June 2026, while the Dongfeng Honda plant in Wuhan is scheduled for closure in 2027. Each facility has an annual production capacity of 240,000 units. If these closures proceed, Honda’s annual production capacity in China would be slashed from 1.2 million units to just 720,000 units.
In response to these claims, a representative from GAC Honda stated that the company will continue to integrate resources, optimize its strategic layout, and improve operational efficiency in light of changing market conditions. The spokesperson added that the company will focus on product upgrades, technological iterations, and refining its localized product matrix to adapt to the industry’s rapid pace. Meanwhile, Dongfeng Honda issued a more direct rebuttal, stating that its operations are currently normal and there are no plans to close any plants.
Data shows that Honda’s sales in China have been on a downward trajectory since peaking at 1.627 million units in 2020. By 2025, terminal sales had plummeted to just 645,300 units, representing a year-on-year decrease of 24.3%. This decline has left the capacity utilization rate for its ICE vehicles significantly low. As demand for traditional gasoline-powered cars shrinks and competition from domestic Chinese brands and new energy vehicle (NEV) manufacturers intensifies, many multinational automakers are being forced to restructure their Chinese operations. As of now, Honda China has not released an official announcement, and the progress of its capacity optimization and electrification strategy remains to be seen.
Johna
Johna | Engineer turned Explorer • Automotive Blogger Fueling my passion for precision and the wild. Usually found navigating rugged terrain in my Tank 300 or penning deep-dives into automotive tech. I believe the best stories are found where the pavement ends. Join me as I bridge the gap between engineering and adventure.
