Honda will be ending vehicle production at its Ayutthaya plant in Thailand by 2025, according to a report by Reuters. The carmaker plans to combine the production of its cars under its other plant in Thailand, located in the Prachinburi province.
This decision has been made due to the reduction of sales Honda has seen in the Southeast Asian market, as more and more Chinese carmakers enter the region and demand for electric vehicles (EVs) rises.
Honda has two vehicle production plants in Thailand. The first of which is located in the Ayutthaya province, which first opened in 1996. From 2025 onwards, production at this plant will focus on the brand’s car parts. At the moment, Honda’s models such as the Accord, CR-V, and Civic are produced at the Ayutthaya plant, which has a 150,000-unit annual production capacity.
The Japanese carmaker’s other plant in Thailand is located in the Prachinburi province. Opened in 2016, the plant houses the production of the Honda HR-V, City, and City Hatchback, with a 120,000-unit annual capacity.
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Since 2019, Honda saw a reduction in combined production numbers between its two plants in Thailand, from 228,000 vehicles to under 150,000 in 2023. Its vehicle sales in Thailand have also dived below the 100,000-unit mark since 2020.
By reshuffling its vehicle production strategy in Thailand, Honda hopes to eliminate the gap between its vehicle production and sales in the country. Honda’s plants in Thailand currently export to other Southeast Asian markets, including Indonesia and the Philippines. The brand has no plans to make new investments in the country for the moment.
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