Honda Motor announced that it will reduce its production in the Southeast Asian country of Thailand by more than 50 percent.
Recently, Chinese automobile companies have started to create great competition in Southeast Asia.
In the face of this situation, the market shares of Japanese manufacturers are negatively affected.
According to the Honda Motor statement, the Japanese company plans to reduce its production capacity in Thailand by more than 50 percent.
Honda, which has two facilities in Thailand, will end vehicle assembly at its "Ayutthaya" factory by the end of 2025.
In line with the new decision, the Japanese company's production capacity in Thailand will decrease from 270 thousand vehicles per year to 120 thousand vehicles. The factory in question will produce spare parts for a while.
The company will continue to assemble automobiles at its "Prachinburi" facility. According to state broadcaster NHK, Honda executives do not foresee a recovery in domestic sales in Thailand in the near future.
Honda started automobile production in Thailand in 1992.
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