Honda CEO Admits Chinese EV Manufacturers Are Far Ahead in Automation
Honda boss Toshihiro Mibe says the speed and efficiency of Chinese electric vehicle factories reveal the growing dominance of China’s auto industry.
Honda CEO Toshihiro Mibe has expressed concern over the rapid advancement of Chinese electric vehicle manufacturers after visiting a highly automated EV plant in China. He admitted that the level of automation and operational efficiency observed at the facility highlighted the widening competitive gap facing traditional automakers.
Honda Chief Executive Officer Toshihiro Mibe has openly acknowledged the growing technological advantage of Chinese electric vehicle manufacturers, describing their production efficiency as difficult for traditional automakers to match.
Mibe made the remarks following a visit in February to a major electric vehicle manufacturing facility in China, where he reportedly observed a highly automated production system with minimal human involvement on the factory floor.
According to reports by SlashGear and Nikkei Asia, the Honda CEO was particularly struck by the plant’s speed, logistics coordination and automation-driven operations.
Speaking on the experience, Mibe admitted that Honda currently struggles to compete with the level of efficiency demonstrated by Chinese automakers.
He reportedly stated that the factory had automated nearly every aspect of production, from parts procurement to logistics management, leaving virtually no human presence on the production floor.
The development comes as global automakers continue adjusting to major shifts within the electric vehicle industry and changing government policies.
Honda, alongside other major automobile manufacturers, was forced to accelerate strategic changes in mid-2025 after policy adjustments in the United States removed a longstanding electric vehicle tax credit.
The changes contributed to significant financial losses across the industry, with companies such as Ford and General Motors recording multi-billion-dollar setbacks, while Honda reportedly posted losses exceeding $15.7 billion.
Despite the challenges, Mibe previously maintained that transitioning away from fossil fuel-powered vehicles remains necessary to address climate change and reduce environmental impact.
Honda disclosed its first annual loss in early March, shortly after Mibe’s visit to the Chinese facility, further highlighting the growing pressure traditional automakers face in the rapidly evolving global EV market.
Industry analysts believe China’s dominance in battery production, supply chains, automation and large-scale manufacturing continues to strengthen the competitive advantage of its electric vehicle companies over many Western and Japanese automakers.
