07:07 AM EDT, 07/09/2024 (MT Newswires) -- Honda Motor Company ( HMC ) plans to stop vehicle production at its factory in the Ayutthaya province in Thailand by 2025 to consolidate output under its plant in the Prachinburi province, Reuters reported Tuesday citing a company spokesperson.

The factories are the only two plants the Japanese automaker has in Thailand, according to Reuters.

Honda ( HMC ) plans to produce car parts at the Ayutthaya plant when it stops making vehicles there next year, the company spokesperson said.

This comes as Honda ( HMC ) faces a drop in sales in the country amid an increase in the market share of Chinese brands and growth in consumer demand for electric vehicles.

Honda's ( HMC ) combined production at the plants fell from 228,000 vehicles in 2019 to under 150,000 a year for each of the four years through 2023 while sales in Thailand have been under 100,000, according to Reuters.

With this move, the automaker aims to close the gap between its vehicle production and sales in Thailand, the spokesperson said, adding that Honda ( HMC ) has already been exporting from Thailand mainly to other Southeast Asian markets such as Indonesia and the Philippines.

The company currently has no plans of making new investments in Thailand, according to the spokesperson.