Honda Extends China Production Halt Amid Chip Shortages, Stock Rises
Honda Motor Co. shares climbed nearly 2% despite extending a production suspension at three China plants through January 19. The halt, initially slated to end January 5, will reduce output by approximately 23,000 vehicles as semiconductor shortages continue disrupting global auto supply chains.
Market Optimism appears tied to Honda's proactive handling of supply constraints. The affected facilities—two legacy plants and a new NEV factory—represent 600,000 units of annual capacity in a market where Honda's sales already fell 30.7% year-over-year through November 2024.
Automakers globally are diversifying chip suppliers to mitigate concentration risks. The positive investor response suggests confidence in Honda's ability to navigate persistent supply chain volatility.
