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Honda could consider returning to European car manufacturing – report

Honda stopped producing cars in the UK and Turkey in 2021 and does not currently manufacture automobiles in Europe.

Shubhendu Vimal November 04 2026

Honda Motor could restore a car manufacturing presence in Europe depending on the final version of proposed European Union rules favouring locally made vehicles.

European unit president Hans de Jaeger told Bloomberg at the EICMA motorcycle show in Milan, Italy, that the Japanese carmaker was examining options including local production and manufacturing alongside another automaker.

No such plan is currently under consideration.

Honda stopped producing cars in the UK and Turkey in 2021 and does not currently manufacture automobiles in Europe.

De Jaeger said the company had “certainly no intention to leave Europe”.

The European Commission’s proposed Industrial Accelerator Act is part of measures aimed at protecting manufacturing and reducing strategic dependencies amid increased competition from China.

Under the proposal, some public procurement opportunities and support would be reserved for vehicles meeting “Made in EU” requirements.

These include local assembly and strict European-content thresholds.

The legislation requires approval from the European Parliament and EU member states.

De Jaeger said he hoped the final rules would treat Japan as a trusted partner, referring to Japanese companies’ investment in the region.

He said Honda’s current sales volume would not support a new factory, although higher sales could change the company’s assessment.

Honda Motor’s global vehicle production declined by 12% to 273,189 units in September 2026.

Shipments to Europe increased 30% to 38,126 units.

In the first nine months of 2026, Honda’s global vehicle production declined by 5.3% to 2,454,734 units, down from 2,591,298 units a year earlier, with a 3.7% rise in Japan to 522,740 units more than offset by a 7.4% drop overseas to 1,931,994 units.

Last month, Honda and Mitsubishi Motors signed an MoU to develop a Triton-based pickup for the ASEAN market, with sales scheduled for 2028.

Under the MoU, Honda will launch a one-tonne pickup built on the ladder-frame architecture of the Mitsubishi Triton.

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