Honda announced on January 26, 2026, that its previously halted Chinese auto factories had gradually resumed production since January 19. The shutdowns were primarily caused by a temporary suspension of shipments from automotive chip supplier Nexperia, which led to critical component shortages, forcing multiple Honda plants to halt operations.
According to reports from Nikkei and Reuters, Honda has now achieved a certain level of procurement stability.
Among these, three plants under GAC Honda—a joint venture between Honda and Guangzhou Automobile Group (GAC)—have returned to normal operation starting the week of January 19. These factories had originally planned to resume work on January 5 but faced about a two-week delay due to ongoing supply chain disruptions.
In Japan, domestic plants also recovered after production cuts beginning January 5, with full operations resuming by January 12. This indicates that supply bottlenecks affecting both China and Japan have temporarily eased.
Previously, Honda estimated that chip shortages at North American plants would negatively impact operating profit by approximately JPY150 billion (approx. US$970.1 million) for fiscal year 2025 (April 2025-March 2026). However, losses related to reduced output in China and Japan have not yet been factored into current financial forecasts.
Amid trade disputes between the Netherlands and China in 2025, Nexperia's shipment suspensions forced automakers, including Honda and Nissan, to cut production, raising alarms within Japan's auto industry. Moving forward, industry groups plan to establish an automotive chip information management platform to quickly identify alternative sources and mitigate procurement risks, ensuring supply chain stability for the sector.
Article edited by Jack Wu
