Honda CEO Toshihiro Mibe has acknowledged that the company is facing serious challenges in competing with Chinese electric vehicle (EV) manufacturers, following a visit earlier this year to a highly automated EV production facility in China.
According to reports, Mibe was left deeply impressed and also concerned by the advanced level of automation and operational efficiency he witnessed at the plant. He observed that Chinese EV production lines are operating at a pace and precision that global automakers like Honda are finding difficult to match.
He was quoted expressing a stark realization after the visit, suggesting that Honda currently has very limited ability to compete with such a high level of manufacturing execution.
What particularly stood out to him was the near-complete automation of the facility. From supply chain coordination and parts sourcing to final assembly and logistics, the entire system appeared to function with minimal human presence on the factory floor, highlighting the scale of technological integration in China’s EV industry.
Mibe’s comments come at a time when traditional automakers worldwide are under growing pressure in the rapidly evolving electric vehicle market. The competition has intensified significantly, forcing many companies to rethink their strategies.
Honda itself was compelled to revise its approach in mid-2025 after policy changes in the United States removed key tax incentives that had previously supported EV adoption. This shift caused financial strain across the industry, with major automakers such as Ford and General Motors reportedly incurring multi-billion-dollar losses. Honda’s losses were also estimated to exceed $15 billion.
Despite these financial and competitive challenges, Mibe has previously emphasized that Honda still sees a long-term responsibility to transition away from fossil fuels and contribute to addressing global climate change.
Earlier this year, Honda also reported its first annual loss, further highlighting the difficulties it faces as it tries to maintain relevance in an increasingly aggressive and technology-driven EV landscape.
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