Honda Motor is set to temporarily suspend vehicle production at its joint-venture plants in China toward the end of December, highlighting that global semiconductor shortages continue to disrupt the automotive supply chain.
The decision is significant given China’s role as one of Honda’s largest production bases and key sales markets worldwide.
According to reports, all three factories operated under the GAC Honda joint venture will completely stop vehicle manufacturing from December 29 to January 2.
During this five-day period, full vehicle assembly operations will be halted, marking one of the latest production disruptions faced by the Japanese automaker in 2024.
Honda confirmed that the suspension is primarily due to ongoing shortages of semiconductors, a critical component used across modern vehicles.
While the company previously indicated that chip supplies had started to improve, the latest shutdown suggests that availability remains insufficient to maintain uninterrupted production schedules.
The development underscores the fragile state of global supply chains, particularly for automakers heavily reliant on electronic components.
China remains central to Honda’s global operations. In 2024, the company manufactured approximately 816,600 vehicles in China, accounting for nearly 22 percent of its worldwide production.
Additionally, Honda sold more than 850,000 vehicles in the Chinese market during the year, reinforcing the country’s importance both as a manufacturing hub and a major revenue source.
The temporary production halt contrasts with Honda’s earlier outlook. The automaker had previously guided that production conditions were expected to stabilize from late November.
However, the latest announcement indicates that supply chain challenges, especially semiconductor constraints, continue to hinder efforts to fully normalize output.
Investor sentiment reflected growing concerns following the report. Honda’s shares dropped around 1.5 percent on the Tokyo Stock Exchange on the day the news surfaced.
Market participants appear wary that persistent component shortages, combined with softer vehicle demand in key markets, could pressure the company’s financial performance in the coming quarters.
Beyond China, Honda also plans short production pauses at its domestic facilities in Japan. The company stated that its Japanese plants will suspend operations on January 5 and January 6, signaling that supply-related disruptions are affecting multiple regions.
Overall, the reported production stoppages highlight that semiconductor shortages remain a critical challenge for Honda.
Despite earlier signs of recovery, chip supply constraints continue to influence manufacturing plans across China and other major markets, keeping pressure on global automotive production.