Japanese automaker Honda will shut its production plant at Laguna, the Philippines, effective March 2020.
Honda is citing efficient allocation of resources as the reason behind the decision.
The plant caters to local demand and produces the BR-V and the Civic models.
Honda will continue sales and after-sales services in the Philippines through utilisation of its regional network.
According to Honda Cars Philippines, this move is aimed at meeting customer needs for reasonably priced and quality products, after consideration of the company’s production operations in Asia and Oceania.
Honda’s worldwide production in 2019 declined to 5,170,595 units from 5,357,013 units in 2018.
In Asia excluding China, the company produced 2,234,963 units in 2019 a drop of 62,323 units from the year prior.
Honda’s sales outside Japan in 2019 were 131,322 units from 176,715 units the year prior.
In Asian markets, excluding Japan, the carmaker sold 9,802 units in 2019, compared to 10,886 units in 2018. Honda Cars, Philippines had begun production in 1992.