Honda Motor's (TYO:7267) plan to halt production at some Chinese facilities, starting July, as part of its cost reduction plan may hit its spare part suppliers hard, with the majority forecasting a global sales decline in fiscal 2027, Nikkei Asia reported June 20.

The Japanese auto parts manufacturer G-Tekt reported an estimated operating loss of 940 million yen in China for the year ended March 2026, due to a decline in Honda-related production.

Among the nine Tokyo-listed suppliers that derive at least 40% of their revenue from Honda, five expect sales to decline in the fiscal year ending March 2027.

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