Honda Motor to cease automobile sales operations in South Korea by 2026

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The move follows reports that Honda will shut two joint-venture petrol car plants in China.

Japanese automaker Honda Motor has announced that it will cease its automobile sales operations in South Korea at the end of 2026.

In an official statement, Honda attributed the decision to changes in the global and South Korean automobile market environment. The company said the move was made “after thorough consideration”, and is aimed at “concentrating corporate resources to strengthen its mid- to long-term competitiveness”.

Despite the withdrawal from vehicle sales, Honda said it will continue to provide after-sales services in South Korea, including vehicle servicing and maintenance, parts supply, and warranty support for exisiting customers.

The company also said it will further strengthen its motorcycle business as the core of its operations in the South Korean market, by continuing to offer compelling products and further enhancing customer services and experiences.

The move comes shortly after reports that Honda will scale back its manufacturing footprint in China as competition from electric vehicle makers intensifies.

Reuters previously cited sources as saying that Honda will halt operations at one of its two petrol car plants jointly operated with Guangzhou Automobile Group (GAC) in June, and is considering suspending another plant jointly owned with Dongfeng Motor Group next year.

In response to Reuters’ requests, Honda said the information had not been officially announced by the company and that it had no further comment. GAC and Dongfeng did not respond.