Honda will stop making cars at its plant in Ayutthaya, Thailand, by 2025 and move production to its plant in Prachinburi.

Representative Honda he said the company plans to convert the Ayutthaya plant into a parts manufacturing base after it stops making cars. The plant was built in 1996 and is one of two Honda plants in Thailand. The Prachinburi plant was built in 2016 and will be responsible for manufacturing all cars.

Honda’s car production in Thailand fell from 228,000 cars in 2019 to less than 150,000 cars per year in 2023. During the same period, sales of Honda cars in Thailand fell below 100,000 units per year.

A Honda representative said the company hopes to close the gap between production and sales in the Thai market with this integration. Honda currently exports cars from Thailand to other Southeast Asian countries such as Indonesia and the Philippines. The representative also said Honda currently has no new investment plans in Thailand.

Other Japanese automakers such as Honda and Nissan face fierce competition from Chinese car brands. Last week, BYD opened a battery car manufacturing facility in Thailand.