Honda facing production cuts in Japan

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Two Honda car assembly lines in Japan will be operating at a reduced capacity from next month, potentially affecting Australian supply of the new Civic sedan and HR-V SUV.

Japanese car maker Honda is cutting production by up to 30 per cent in its home market in August, due to ongoing parts supply interruptions.

A report by news agency Reuters said Honda’s Japanese factories are facing a shortage of semiconductors as well as ongoing delays in parts due to extended COVID-19 lockdowns in Shanghai, China.

According to the report, Honda’s Suzuka factory will begin with a 10 per cent production cut from the end of July, followed by a 30 per cent reduction in production in August compared to its original target.

In addition to this, the Saitama factory is cutting production by roughly 10 per cent throughout August.

Australia currently receives two Honda models from its Japan – the new Civic (built in Saitama) and the HR-V (built at Suzuka).

Honda Australia is currently investigating whether its supply of Civic and HR-V will be affected.

The only other Honda models on sale in Australia are the CR-V SUV and Accord sedan, both of which are manufactured in Thailand.

In July 2021, Honda Australia switched to non-negotiable fixed-price sales, recording a 29 per cent decline in deliveries from January to July 2022 and falling outside the Top 10 compared to the opening six months of 2021.

Honda new-car sales were in positive territory in May and June 2022 – posting year-on-year increases – however the uptick has been attributed to a sharp drop in sales in the same months the prior year, in the lead-up to the fixed-price business model.

Jordan Mulach

Jordan Mulach is Canberra/Ngunnawal born, currently residing in Brisbane/Turrbal. Joining the Drive team in 2022, Jordan has previously worked for Auto Action, MotorsportM8, The Supercars Collective and TouringCarTimes, WhichCar, Wheels, Motor and Street Machine. Jordan is a self-described iRacing addict and can be found on weekends either behind the wheel of his Octavia RS or swearing at his ZH Fairlane.

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