Honda Cuts Production in Thailand as Sales Slow

Honda Motor Co. will eliminate one of two production shifts at its factory Autthaya, Thailand, at the end of March because of slowing demand for two small car models made there, The Nikkei reports.

The factory assembles a mix of eight cars and crossover vehicles and has capacity to produce 300,000 units per year. The facility, along with Honda’s plant in Prachinburi, supplies markets throughout southeast Asia.

Thailand’s domestic market peaked at a record 1.43 million units in 2012, boosted by government tax breaks. But sales have dropped to 800,000 or fewer since then after the incentive plan ended.