AutoBeta(AutoBeta.net)02/23 Report--

Honda, which has grown up in the Chinese market, can no longer survive in the Philippine market. Honda decided to stop production at its Philippine plant in March in order to speed up the global restructuring, according to Japanese media reports.

Although the local car plant has been closed, Honda has not abandoned plans for the market. Honda Philippines will also continue to carry out related sales and after-sales service business in the Philippines.

Honda officials said it had been considering "effective allocation of resources" to provide Filipino consumers with "reasonably priced, high-quality car products", adding that "in view of the optimization of production operations in Asia and Oceania, Honda decided to stop localizing production operations at its plants in the Philippines."

Honda sold only 20338 cars in the Philippines in 2019, down 12.7% from a year earlier, according to data. Poor sales are an important reason why Honda finally stopped producing locally.

Honda, which began producing cars locally in the Philippines in 1992, produces the BR-V and City at its Santa Rosa plant south of Manila. It employs 650 people and has a total annual capacity of 30, 000 vehicles, but the plant produced only 7000 vehicles in 2019. The factory has also produced Civic models, but Honda stopped producing the model locally in 2012 and switched to imported sales. In the future, Honda plans to import cars from Thailand and Indonesia in Southeast Asia to the Philippine market.

As part of Honda's global restructuring plan, Honda has announced plans to stop localized car production in the UK, Turkey and Argentina. Among them, Honda confirmed plans to close its plant in Swinton in the UK in 2021.

In 2019, Honda's global sales reached 5.178 million, a decrease of 1.1%, of which sales in the Chinese market reached 1.55 million. It can be expected that Honda will focus on the core market in the future.

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