Honda will shut off the production of internal combustion engine in China

The pace of operation of the plant in the province of Guangdun, producing motors, will be slowed, writes Nikkei Asia. The reason is the rapidly growing demand for electric cars in China and a drop in interest in the fuel machines. The Japanese brand is rapidly losing buyers on the largest car market in the world, which forces it to reduce local capacities.

At the end of March, one of the production lines of the Dongfeng Honda Engine plant will be closed, insiders say. Now a joint with the Chinese Dongfeng company produces 520 thousand motors per year, and will produce 260 thousand.

This is not the first adjustment of Honda production capacities in China. In January, the plant in Guangzhou stopped, which the company managed together with Guangzhou Automobile Group. 240 thousand machines flowed from its conveyor annually.

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On such steps of the Japanese, it forces the fall of sales. More and more Chinese people choose cars on new energy sources (NEV), and domestic, and demand for foreign cars with ICE is reduced. Together with it, Honda sales are also falling: last year the company sold 850 thousand cars in the PRC. This is 30 percent less than 2023. Moreover, the indicator for the first time in nine years has not reached a million units.

At the same time, Honda is in a hurry to update the local line, adding “green” cars. So, the company recently introduced the S7 electric carspaper, which will be produced with the GAC. The 4.75-meter SUV will be offered with two variants of power plants-a single-engine capacity of 272 horsepower and a two-engine for 476 forces.

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