Honda ends vehicle production in Sayama mother plant, first step in saying goodbye VTEC and hello EVs
CY Foong · Feb 7, 2022 12:50 PM
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As part of its efforts to go fully electric in its line-up by 2040, Honda is getting ready to close its legendary Sayama plant for good in the next two to three years. The plant which has been building cars since 1964 rolled out its final batch on 27-December 2021 with a “line-off ceremony”.
The very first Civic rolling off the Sayama plant back in 1972
The Sayama plant was Honda’s ‘mother factory’ and among the models that once called the plant home included the Civic, Accord, and the Odyssey. The Honda Odyssey has been discontinued due to the plant’s closure but the nameplate is still very much alive in North America albeit being more different than what was sold overseas.
One of the first units built at the Yorii plant was the Honda Freed
Honda had announced the plant’s closure back in 2017 and all vehicle production operations will be transferred to the newer Yorii plant. Though vehicle production has ended at Sayama, the plant remains operational for now, making parts, but will be permanently closed in two to three years.
The factory had the capacity to build around 250,000 cars a year and Honda had a domestic production capacity of around 1 million cars annually across its three Japanese plants in Sayama, Yorii, and Suzuka.
However, that number has since shrunk to around 800,000 vehicles in 2021 and Honda has been more popular overseas than in its home market. While rivals, Toyota and Nissan, plans to remain focused on the Japanese market, Honda is cutting costs at home to pay more attention to the global markets.
For comparison, Toyota produces 3 million units annually for the Japanese domestic market (JDM) while Nissan makes around 1.34 million vehicles a year for the same market.
Honda leased the EV Plus in America a little more than 20 years ago
With more profit gained in overseas markets, it makes sense from a business standpoint for Honda to say good-bye to internal combustion engines (ICE) and welcome electric motors, fans’ backlash be damned. The American and Chinese markets are more lucrative and these are among the markets leading the charge (pun, intended) in electric vehicles (EV) sales.
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EV makers like Tesla, Rivian, and Lucid have emerged in the U.S. while President Joe Biden’s administration is also promoting the development of EVs.
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Though the Chinese government had announced plans to scrap EV subsidies by the end of 2022, EV sales have been growing across the country with 100 percent growth year on year. Hence, Honda would have a better head start compared to other Japanese rivals in these markets since the H brand has quite a presence among buyers.
On the other hand, Japanese carmakers are slow to the EV revolution due to the underdeveloped charging station network in the country. Plus, since much of Japan’s electricity is generated by fossil fuels, consumers don’t buy into the “greener” way of mobility so switching to EVs doesn’t make much change in the environment.
With the original ‘mother plant’ to be closed for good, that role will be taken over by the Yorii plant which opened in 2013. The Yorii plant is also the home base for the Honda e, Honda’s first all-electric vehicle available commercially which ties in with the brand’s electric ambitions.
In spite of that, however, Honda has posted weaker profit margins in 2021 and global capacity is projected to fall from 5.59 million cars in 2020 to 5.14 million in 2021. Still, the end of vehicle production in Sayama also marks the beginning for Honda to become a highly efficient and competitive EV manufacturer.
Traded advertising for a career that fits his passion for cars. Enjoys spotting cars during his free time and has a soft spot for Japanese Kei cars but drives a thirsty manual sedan.
