Honda Halts China, Japan Production Amid Chip Shortages

Honda Motor is hitting pause at several key factories in China and Japan as the global semiconductor shortage continues to disrupt auto production. 

All three GAC Honda joint-venture plants in China will temporarily stop vehicle manufacturing from Dec 29 to Jan 2, while select Japanese plants will also shut down on Jan 5 and 6.

The move comes despite earlier hopes that production would return to normal by late Nov. The ongoing chip crunch, affecting crucial components like vehicle control systems, windshield wipers, and window functions, shows the auto supply chain is still struggling to stabilize.

China is a critical market for Honda. In 2024, the company produced more than 816,000 vehicles there, about 22% of its global output and sold over 850,000 cars, highlighting how important the country is both for manufacturing and sales. 

The production pauses in China and Japan are part of a broader pattern affecting Honda globally. In recent months, the company has had to reduce sales forecasts and adjust output in North America and other regions due to lingering chip shortages.

Despite signs of improvement earlier this year, the ongoing supply constraints show just how fragile the global auto supply chain remains.

Honda says it’s actively coordinating with suppliers to minimize disruptions, but for now, buters may face delays in new vehicle availability as plants take these brief breaks.