Honda Motor's (TYO:7267) plan to halt production at some Chinese facilities, starting July, as part of its cost reduction plan may hit its spare part suppliers hard, with the majority forecasting a global sales decline in fiscal 2027, Nikkei Asia reported June 20.
The Japanese auto parts manufacturer G-Tekt reported an estimated operating loss of 940 million yen in China for the year ended March 2026, due to a decline in Honda-related production.
Among the nine Tokyo-listed suppliers that derive at least 40% of their revenue from Honda, five expect sales to decline in the fiscal year ending March 2027.
(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)