Honda Motor is set to reduce its workforce at its Chinese joint venture with Dongfeng Motor Group, marking its second wave of job cuts in China as the market shifts towards electric vehicles (EVs), Nikkei reported. Dongfeng Honda began offering early retirement to production workers at three factories in late August, following similar steps taken at GAC Honda earlier this year.
While the exact number of job cuts at Dongfeng Honda remains undisclosed, one of the factories, with an annual capacity of 240,000 units, will pause operations in November. This comes after GAC Honda, Honda’s joint venture with GAC Group, saw around 1,700 workers—14% of its workforce—accept early retirement in May.
Honda initially aimed to reduce 3,000 positions in China by the end of the fiscal year through voluntary retirement and attrition. However, the additional cuts at Dongfeng Honda suggest the downsizing could be broader than planned.
The restructuring is part of Honda’s strategy to transition from gasoline vehicles to EVs, where demand in China continues to grow. Despite this shift, Honda’s Chinese sales have lagged, with August sales plunging 44% year-on-year, marking the seventh consecutive month of decline for the automaker in the region.
