Honda's December Production Rebounds 4% Globally, But Annual Output Slips Amid Regional Shifts

TOKYO – Honda Motor Co. reported a modest rebound in global vehicle production for December 2025, with output rising 4.3% year-on-year to 283,161 units. The increase follows a severe 34% plunge in November, which the company had blamed on persistent semiconductor shortages that drained inventories.

The December figures reveal a stark regional divide. Production in North America surged 29% to 117,601 vehicles, recovering from a 61% collapse the previous month. In contrast, output in Asia (excluding Japan) fell 16% to 97,923 units, led by an 11% drop in China to 68,201 units. Honda's domestic production in Japan grew over 9% to 61,417 units.

The monthly uptick, however, was not enough to offset a challenging year. For full-year 2025, Honda's global production totaled 3,396,057 vehicles, down almost 9% from 2024. The decline was driven primarily by overseas factories, where output fell nearly 11%. Production in Asia plummeted 18%, with China down over 16%. Notable declines were also seen in Indonesia (-47%) and Malaysia (-22%). North American production for the year fell 6%.

"The December rebound in North America suggests supply chain issues are easing, but the annual picture shows Honda is navigating a significant rebalancing of its global manufacturing footprint," said industry analyst Michael Tanaka. "The sharp drop in Asia, especially against the backdrop of a growing Chinese EV market, points to competitive pressures beyond just chip shortages."

A bright spot was a 20% increase in vehicle exports from Japan for 2025, fueled by a near-quadrupling of shipments to the United States.

Reader Reactions:

• David Chen (Auto Industry Consultant, Detroit): "This is a classic tale of two markets. Honda's ability to restart North American lines quickly is impressive, but the annual numbers are concerning. Losing nearly a tenth of global volume in one year isn't just a chip problem—it's a strategy problem. They're losing ground in the world's largest car market."
• Sarah Johnson (Small Business Owner, Ohio): "As someone who just bought a new Honda, I'm relieved to see production getting back on track here. Dealership lots were looking empty for a while. Hopefully, this means better selection and maybe even some incentives returning soon."
• Kenji Sato (Former Honda Engineer, Saitama): "The collapse in Asian production is alarming and being downplayed. A 47% drop in Indonesia? A double-digit fall in China while BYD and others soar? This isn't a supply chain blip—it's a crisis of relevance. Management needs to explain what the plan is, or more than just annual output will keep falling."
• Maria Rodriguez (Economics Student, Madrid): "The export data is fascinating. Honda is shipping significantly more cars from Japan to the U.S., even as its U.S. factory output falls. This could reflect a shift toward higher-margin models built domestically, or maybe just filling immediate gaps. It's a complex logistics puzzle."

This report is based on data released by Honda Motor Co. and has been supplemented with industry context.