Honda Reportedly Plans to Shut Two China ICE Plants; Dongfeng Honda Denies Reports

On April 17, 2026, Japanese media reported that Honda plans to shut down two of its internal combustion engine (ICE) vehicle production plants in China to address declining sales and excess capacity. According to the report, Honda currently operates four ICE vehicle plants in China and intends to halt production at GAC Honda’s Guangzhou plant in June 2026 and cease operations at Dongfeng Honda’s Wuhan plant in 2027. Each of these two plants has an annual production capacity of 240,000 vehicles. If implemented, Honda’s total annual production capacity in China would drop from 1.2 million vehicles to 720,000. In response, GAC Honda stated it would continue integrating resources, optimizing its layout, and improving efficiency in line with market changes, while focusing on product upgrades and technological advancements to strengthen its localized product portfolio. Dongfeng Honda explicitly replied that its operations remain normal and that it currently has no plans to shut down any plants. Data shows that Honda’s sales in China have been continuously declining since peaking at 1.627 million units in 2020. In 2025, its retail sales totaled 645,300 units, a year-on-year decrease of 24.3%, with ICE vehicle capacity utilization remaining low. Amid shrinking demand for fuel-powered vehicles in China and intensifying competition from domestic brands and new energy vehicle (NEV) makers, several multinational automakers are adjusting their production capacities and streamlining operations in the Chinese market. As of the time of reporting, Honda China had not issued an official statement on the matter, and further details regarding capacity optimization and its electrification strategy remain to be disclosed.