Intense Competition Forces Honda to Close One Factory in Thailand Next Year
Honda Motor is reported to be closing one of its manufacturing plants located in the Ayutthaya region next year due to the intense competition it is facing.
According to a Reuters report, the manufacturer plans to consolidate vehicle production at the Prachinburi plant, while the Ayutthaya plant will be converted into a parts production hub.
Honda is also reported to be making additional investments at the Prachinburi plant to enable them to switch from assembling internal combustion engine vehicles to producing hybrid engine vehicles.
Honda’s first vehicle assembly plant in Thailand was opened in the Ayutthaya region in 1996, while the second plant was opened in Prachinburi in 2016.
Intense competition from Chinese automotive manufacturers has seen Honda settle for sales below the 100,000 units over the past four years.
In fact, since 2019 the total production figures recorded by the two plants in Thailand have decreased from 228,000 units to below 150,000 units in the same period up until last year (2023).
