Honda Motor Co. has announced it will cease vehicle production at its Ayutthaya factory in Thailand by 2025, consolidating its operations at the Prachinburi plant. This strategic move comes as Honda faces growing competition from Chinese brands and rising consumer interest in electric vehicles (EVs) in the Thai market.
The Ayutthaya plant, operational since 1996, will pivot to manufacturing car parts after vehicle production ends. Vehicle assembly will be centralized at the Prachinburi facility, which opened in 2016. These two factories represent Honda’s entire production footprint in Thailand.
This consolidation reflects broader industry pressures, with Honda’s combined output from these plants dropping from 228,000 vehicles in 2019 to less than 150,000 annually over the past four years. Sales have similarly declined, staying below 100,000 units annually during this period.
Honda’s realignment aims to bridge the gap between production and sales in Thailand. Despite no plans for new investments in the country, Honda continues to export vehicles primarily to other Southeast Asian markets, including Indonesia and the Philippines. This decision highlights the challenges Japanese automakers face as Chinese brands lure consumers with affordable, tech-savvy EVs and hybrids.
