Honda Considering Decoupling Supply Chain From China -Sankei.

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Honda Motor Co Ltd (7267. T) is considering building a separate supply chain that would reduce its dependence on China, the Sankei newspaper reported, in what would be a high profile move by a major Japanese manufacturer.

Many big Japanese companies have built extensive production hubs in China but have recently seen output snarled by COVID-19-related lockdowns. There are also deepening worries about the impact of tensions between the United States and China.

Nearly 40% of Honda’s automobile production took place in China in the last financial year.

Honda would continue to keep its supply chain in China for the domestic market in the world’s second-largest economy, while building a separate one for markets outside of China, the Sankei said. It did not say where it got the information.

Honda had no immediate comment, a spokesperson said.


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