Honda Tells Suppliers to Cut Costs in $9 Billion Push to Fend Off Chinese Competition

10:48 - 2.09.2026


September 2, Fineko/abc.az. Japan's Honda aims to cut more than $9 billion in costs over the next four years and has instructed suppliers to drastically reduce their component prices by up to 30%, according to internal documents and sources cited by Reuters.

The automaker targets a total saving of 1.5 trillion yen ($9.4 billion) by 2030 to fix its struggling automotive business and offset EV-related losses expected to exceed $12 billion. As Chinese EV giants like BYD rapidly capture market share across Southeast Asia, Latin America, and Europe, Honda is shifting its primary focus toward gasoline-electric hybrids and aggressive cost-cutting measures to maintain competitiveness.