Honda will close a factory in Thailand, concentrating production in a single plant.


This Tuesday, Honda Motor of Japan announced that it will close one of its factories in Thailand and concentrate all production capacity in the remaining factory.

Honda Motor Co. announced on Tuesday that it will cease automobile production at its Ayutthaya plant in Thailand by 2025, and plans to consolidate production at its Prachinburi plant.

This move highlights the challenges faced by Japan's second-largest automaker in Southeast Asia, particularly as Chinese brands actively vie for market share in Thailand and consumer demand for electric vehicles grows.

Honda plans to continue producing auto parts at the Ayutthaya plant, which was first established in 1996, after ceasing car production.

A company spokesperson stated that Honda will concentrate its automobile production at the Prachinburi plant, which was opened in 2016. These two facilities are Honda's only production sites in Thailand.

Honda indicated that the combined output of these two plants has dropped from 228,000 vehicles in 2019 to less than 150,000 vehicles annually in 2023.

Over the past four years, Honda's sales in Thailand have remained below 100,000 vehicles annually.

The spokesperson noted that Honda aims to bridge the gap between automobile production and sales in Thailand.

However, the spokesperson also mentioned that Honda has been exporting cars from Thailand to other Southeast Asian markets, primarily Indonesia and the Philippines.

The spokesperson added that Honda currently has no plans for new investments in Thailand.

In China, Honda and its competitor Nissan Motor Co. are facing fierce competition from rising Chinese brands that attract consumers with low-priced, software-rich electric and plug-in hybrid vehicles.



Risk Warning and Disclaimer

The market carries risks, and investment should be cautious. This article does not constitute personal investment advice and has not taken into account individual users' specific investment goals, financial situations, or needs. Users should consider whether any opinions, viewpoints, or conclusions in this article are suitable for their particular circumstances. Investing based on this is at one's own responsibility.

The End



Investing refers to the act of allocating funds or other resources into certain assets or projects with the expectation of obtaining future returns or benefits. The primary aim of investing is usually to enhance asset value, achieve financial goals, preserve and grow value, or accomplish a specific objective.


Risk Warning

TraderKnows is a financial media platform, with information displayed coming from public networks or uploaded by users. TraderKnows does not endorse any trading platform or variety. We bear no responsibility for any trading disputes or losses arising from the use of this information. Please be aware that displayed information may be delayed, and users should independently verify it to ensure its accuracy.


Contact Us

Social Media