Japanese car brands are starting to feel the heat from Chinese makes. Honda looks to be one of the first victims as it looks to consolidate its manufacturing base in Southeast Asia. This article has been updated with a response from Honda Cars Philippines (see below).
Citing tougher market conditions due to the increased popularity of battery electric vehicles as well as the entrance of Chinese brands into Thailand, Honda will shutter its Ayutthaya plant by 2025. The Ayutthaya plant currently assembles the Accord, Civic, and CR-V. Production will be consolidated at the Prachinburi plant.
The Ayutthaya plant will be repurposed to manufacture car parts for the brand.
Honda has seen the combined production of both plants fall from a high of 228,000 units in 2019 to just 150,000 units annually for each of the four years through 2023. The carmaker’s sales in Thailand have been under 100,000 for each of the four years through last year.
Established in 1996, the Honda Ayutthaya plant has the capacity to make 150,000 units a year. The Prachinburi plant, opened in 2016, produces 120,000 units annually.
Not everything is bad news, however. Honda does plan to pour in additional investments into the Prachinburi plant in a big shift to produce electrified vehicles. Honda has already started producing its first battery electric vehicle—the e:N1—on a dedicated line there.
This is Honda Cars Philippines answer regarding this news:
With the end of vehicle production at the Ayutthaya Assembly Line, this plant will evolve into a parts production and supply base and not be shut down.The Ayutthaya plant will continue applying production technology and supply chain methods that we have cultivated over the years as it takes on a new role as a parts factory.The finished vehicle production will be transferred to Prachinburi plant to strengthen our corporate structure to accelerate the shift towards xEV models.Thus, all of the vehicle assembly, including the models for Philippines, will be transferred to Prachinburi and not affect customer vehicle deliveries.
Sales and demand for CRV and Civic in SEA region aren't that high
ReplyDeletePlant of Nissan in Thailand is likely the next one to close down in two to three years time due to poor sales of Nissan vehicles in that country
Next generation Navara can be assembled instead on the assembly plants of Mitsubishi in Thailand and Philippines while next gen Nissan Kicks can be assembled in Japan instead
Next generation Almera and New Mirage Sedan are likely to be produced together in the same plant of Mitsubishi
Huh, I have always thought the first ones to fold would be subaru and nissan as they dont have a lot 3rd world products in the region. Mitsubishi lost its global footing but strong in the asean with xpander and mirage. I find honda products boring (and expensive for what they offer but anything is) but I have always though they (and toyota) are immune to competition just by brand name alone.
ReplyDeleteHonda is still doing well in Indonesia and Thailand
DeleteSales of CRV and HRV aren't that high anymore
HRV,City,Brio and BRV are the best selling products of Honda in SEA region especially in Thailand,Philippines and Indonesia
HCPI still won't bring in the WRV though due to pricing issues
The thing is- chinese cars offer better design, features , specs and is cheaper to sell than japs cars. The quality is also good, or even better than japs cars. The recently held beijing motor show has lots of japanese cars engineers scrutinizing them china cars with rulers and pens and cameras, trying to learn and discover a thing or two from them.
ReplyDeleteChinese cars sell well in price conscious developing countries because they are cheaper due to labor costs and heavy subsidies from their government.
DeleteWill Toyota feel the pressure next?
ReplyDeleteI think so, that's why while it would make sense for Toyota to own Honda just as the former were to Nissan, then since I also remember that Honda vehicles aren't that excellent in rough conditions compared to Toyota, Nissan, Mitsubishi and Suzuki for ex., Toyota may rather acquire Ford since the latter not only had half of their front-wheel drive-only passenger cars (ex: Fiesta, Focus) to do well in rough surfaces (hence Built Ford Tough) but also Ford may even benefit from Toyota's partnerships with Suzuki and Isuzu since Ford may also rebadge one of their cars like the Ertiga (as a Ford MPV) for ex.. (No irony that Ford under Toyota would do well than Nissan and generally-speaking meant that the Ford Ranger is selling more globally than the Nissan Navara unless if the Ranger would've used the Isuzu D-Max's platform as Ford rebadged the Jimny as a mini-Bronco and replaced the current Territory by an Ertiga with a Ford badge...)
DeleteToyota to own honda, toyota acquire ford - non sense chatgpt
Delete