Are Honda car prices about to increase?

Honda has had to temporarily halt car production due to a chip shortage. Photo: Bloomberg .

Honda Motor continues to be impacted by the global semiconductor chip shortage as it announces a temporary suspension of production at some factories in Japan and China. This move shows that the automotive component supply chain has not yet fully recovered, even though the company had expected production to stabilize by the end of November.

According to a Honda spokesperson, the company will temporarily suspend production at its Japanese plants for two days, January 5-6, 2026. The company did not specify which plants would be affected. Meanwhile, all three plants belonging to the Guangqi Honda Automobile joint venture in China will cease operations from December 29 to January 2, 2026.

The production disruption comes as Honda and many other automakers worldwide continue to face ongoing difficulties in securing semiconductor chip supplies. Although the company had previously stated it expected production to gradually recover from the end of November, the temporary shutdown of several more factories indicates that supply chain issues have not been fully resolved.

This news impacted the stock market, with Honda shares falling about 1.5% in Tokyo trading. Earlier, Japanese media had also reported on the company's plans to temporarily suspend production.

Not only Honda, but many global automakers have also been forced to adjust their production plans in recent months. The main reason stems from China's export controls on Nexperia BV, a chip manufacturer owned by Wingtech Technology. These restrictions prevent Nexperia from exporting products manufactured at its domestic factories, thereby disrupting the supply of components to the automotive industry.

Honda is considered one of the companies most severely affected by the chip shortage. Due to unstable component supply, the company has had to revise down its global vehicle sales forecast to 3.34 million units, significantly lower than the previously projected 3.62 million units. Prior to the disruptions in Japan and China, Honda had also had to cut or temporarily suspend production at some of its North American factories due to semiconductor chip shortages.

Amidst consistently high global demand for automobiles, the ongoing chip shortage continues to pose a significant challenge for automakers, including Honda. Businesses are forced to flexibly adjust production plans and seek solutions to diversify supply sources to reduce dependence on a few specific suppliers.