Japan's Honda Motor Co announced on Thursday (July 25, 2024) that it will close a factory in China and halt car production at another plant as it seeks to start producing more electric vehicles in response to fierce competition from Chinese brands.

Honda will shut down a plant operated by a joint venture with Chinese state-owned automaker Guangzhou Automobile Group in October, a Honda spokesman said, according to Reuters. The plant was built nearly 20 years ago and produces Accord sedan models with an annual production capacity of 50,000 vehicles.

Separately, Honda will suspend production at another plant in China from November, which is operated by a joint venture with Chinese state-owned automaker Dongfeng Motor Group and has an annual production capacity of 240,000 vehicles.

Due to the suspension of production, Honda's annual production capacity in China will be reduced from 1.49 million vehicles to 1.2 million vehicles, the spokesman said.