Honda to Cut Down Production by 30 Percent

Honda Motor Company will reduce production by up to 30 percent in Japan next month. The company has cited the ongoing supply chain and logistical crisis as the key reasons for the reduction.

The company will slash its production by 10 percent this month and 20 percent in August, on two of its lines at the Suzuka production facility in western Japan.

It is observing sluggish operations at its assembly plant in Saitama prefecture this month and will slash production by 10 percent in the same facility next month. Honda itself has shared these details with Reuters, without disclosing the exact production figures.

Automakers have been reeling from the impacts dealt by COVID-19 lockdowns and chip-shortage. Like Honda Motor Company, Toyota Motor Corporation would reduce its production goal by 18 percent as well.

A Similar Situation

Pakistan’s car industry is currently a mirror image of the global industry, as both are struggling due to economic and operational difficulties.

Issues such as deteriorating local currency, tax rate hikes, logistical issues, raw material issues, etc. have forced major automakers like Toyota, Honda, Suzuki, and Kia to trim their production volumes in Pakistan.

Experts speculate that the situation will likely get more challenging for the local auto sector as the economic instability continues.