Honda Motor says it is cutting its full-time production workforce in China through voluntary retirement because of declining vehicle sales in the country.
The Japanese automaker has been mainly producing hybrid vehicles at factories run by two joint ventures that it formed with local partners.
The workforce reduction is taking place at one of the joint ventures. Honda says about 1,700 employees, or about 14 percent of workers, have applied for voluntary retirement so far.
Honda sold about 1.22 million vehicles in China in fiscal 2023, about 30 percent fewer than the peak in fiscal 2020.
The automaker is reviewing its business in China to focus on electric vehicle production. Other Japanese carmakers are also reviewing their China operations.
Mitsubishi Motors decided to withdraw from the Chinese market last year, while Nissan Motor says it will proceed with adjustments to production capacity in China.