Honda Motor will halt vehicle production at its factory in Ayutthaya province in Thailand by 2025. This decision is part of the company’s plan to consolidate its output under the plant it runs in Prachinburi province. The Ayutthaya plant, which first opened in 1996, will instead be used to produce car parts.
This move comes as Honda faces tougher competition in the Southeast Asian market from Chinese brands and growing consumer demand for electric vehicles. The company has seen its combined production at the two plants fall significantly in recent years.
Honda Motor has production facilities in several Southeast Asian countries:
- Thailand: Two plants, one in Ayutthaya (closing in 2025) and one in Prachinburi.
- Indonesia: Karawang Plant, producing models like Brio, BR-V, and City Hatchback.
- Malaysia: Pegoh Plant in Melaka, manufacturing various Honda models.
- Vietnam: Vĩnh Phúc plant, producing motorcycles and automobiles.
- Philippines: Santa Rosa Plant in Laguna, assembling cars and motorcycles.
Is Honda Motor planning for EV in Southeast Asian?
Honda Motor has not yet made any specific announcements regarding EV production in Southeast Asia. However, their decision to consolidate vehicle production in Thailand and halt production at the Ayutthaya plant by 2025 could be seen as a strategic move to adapt to the changing automotive landscape.
The growing demand for electric vehicles (EVs) in the region, along with increased competition from Chinese brands offering EVs, might be pushing Honda Motor to reassess its production strategy. It’s possible that they are planning to focus their efforts on developing and manufacturing EVs in the future, potentially at their remaining Prachinburi plant or at other facilities in Southeast Asia.
While Honda Motor has not confirmed any EV production plans for the region, it’s worth noting that the company has set a global goal to make battery-electric and fuel cell electric vehicles represent 100% of its vehicle sales by 2040. Given the growing importance of the Southeast Asian market, it’s likely that Honda will eventually expand its EV production capabilities in the region to meet this goal.