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Automobile industry

Honda Faces Supply Interruption Due to Thailand Flooding

Strategic Insights

— 1 min read

Honda Cars Philippines, Inc. (HCPI) is currently facing a supply interruption of imported completely built-up (CBU) units as a result of the flooding that devastated its plant in Thailand, which supplies about 70 percent of its total CBU supplies. HCPI imports CBU from its Thailand sister companies CR-V, Jazz, and Accord models. The CBU packs account for 30 percent of sales, while locally assembled models make up 70 percent. The intermittent rainfall since July has caused flood damage in central and northern Thailand, impacting Honda's automobile production at Honda Automobile (Thailand) Co., Ltd. (HATC, Ayutthaya plant) and motorcycle and power product production at Thai Honda Manufacturing Co., Ltd. (TH, Bangkok, Ladkrabang).

Key Takeaways:

  • Honda Cars Philippines, Inc. (HCPI) faces a supply interruption of imported CBU units due to the flooding in Thailand.
  • The flooding has impacted Honda's automobile production at Honda Automobile (Thailand) Co., Ltd. (HATC, Ayutthaya plant) and motorcycle and power product production at Thai Honda Manufacturing Co., Ltd. (TH, Bangkok, Ladkrabang).
  • HCPI imports CBU from its Thailand sister companies CR-V, Jazz, and Accord models, which account for 30 percent of sales.
  • Locally assembled models make up 70 percent of HCPI's sales.
  • The flooding has caused difficulties in accessing the HATC production plant due to an evacuation order.
  • Honda Motor Co. estimates that the flooding has closed down 4.7 percent of its global output.
  • The flooding has impacted other Japanese firms that have made Thailand their Southeast Asian production hub.
  • Honda is working to overcome the supply interruption and minimize the impact on customers, dealers, and associates.

Statistics:

  • 70 percent of HCPI's total CBU supplies come from Honda's plant in Thailand.
  • 30 percent of HCPI's sales come from CBU packs.
  • 70 percent of HCPI's sales come from locally assembled models.
  • The flooding has closed down 4.7 percent of Honda's global output.
  • The flooding has impacted production at Honda Automobile (Thailand) Co., Ltd. (HATC, Ayutthaya plant) and Thai Honda Manufacturing Co., Ltd. (TH, Bangkok, Ladkrabang) since October 4.

Sources:

  • Honda Cars Philippines, Inc. (HCPI) statement
  • Reuters report on Honda Motor Co.
  • Honda Automobile (Thailand) Co., Ltd. (HATC, Ayutthaya plant) report
  • Thai Honda Manufacturing Co., Ltd. (TH, Bangkok, Ladkrabang) report

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