Asia Tech Wire (July 25) -- Honda Motor Co. plans to cut its fuel-vehicle capacity in China as it faces stiff competition in the country's electric-vehicle market.

The Japanese automaker announced Thursday that it will close one of its plants in China while suspending vehicle production at another.

Specifically, Honda expects to close one of its plants, a joint venture with GAC Group, in October. The plant, which has been open for nearly two decades, has an annual production capacity of 50,000 units and produces mainly the midsize Accord.

And in November, the automaker will suspend one of its joint venture plants with Dongfeng Motor, which has an annual capacity of 240,000 units.

The move will reduce Honda's production capacity in China to 1.2 million units from nearly 1.5 million, the largest production cut by a Japanese automaker in the country.

Honda plans to accelerate adjustments to its production layout in China in the following period, in order to better adapt to market demand and accelerate electric vehicle production.

A Honda spokesperson said the adjustments are part of Honda's response to changes in the Chinese market.

With the rapid development of Chinese auto market, especially the new energy vehicle market, Honda is facing strong competitive pressure from Chinese brands.