Honda Motor Co., Ltd. (NYSE:HMC) is one of the best Japanese stocks to buy right now. On April 17, Reuters reported that Honda Motor Co. Ltd. (NYSE:HMC) plans to shut down one of its joint venture plants in China before the year’s end.

Consequently, the Japanese automaker is to halt operations at one of its gasoline-powered plants with Guangzhou Automobile Group. It also plans to halt operations at a second plant operated in partnership with Dongfeng Motor next year.

The shutdown comes as the company moves to slash petrol car production. The change of tack comes as Honda remains under pressure in China, where domestic electric vehicle companies are increasingly gaining market share.

A shutdown of one plant would halve Honda’s petrol car capacity in China to about 480,000 units annually from 960,000 Units. The restructuring is also expected to result in costs of up to $15.7 billion as the automaker also pivots towards electric vehicles in response to a sharp decline in sales in China.

The Japanese automaker has already commenced sales of the all-new Honda Insight electric vehicle in Japan. The fourth-generation EV represents Honda’s transition from the model’s hybrid origins to a fully electric crossover SUV.

Honda Motor Co Ltd (NYSE:HMC) is a global mobility leader that designs, manufactures, and sells automobiles, motorcycles, power equipment, and aircraft. Known for engineering excellence, Honda is a major producer of engines, offering products like cars, ATVs, generators, lawnmowers, and marine engines.

While we acknowledge the potential of HMC as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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