Honda is investing an additional 12 miliar Baht in Thailand to manufacture two completely new vehicle models, headlined by a D-segment hybrid SUV slated for production by late 2026. The flagship model, named the Honda Avancier, will introduce a next-generation e:HEV hybrid powertrain and plug a gap in the automaker’s large 7-seater lineup.
The Bottom Line
- Capital Allocation: Honda is injecting 12 miliar Baht into its Thailand manufacturing footprint to scale regional production volume.
- Capacity Expansion: Facility output at the Prachinburi plant is projected to climb to 150,000 units annually by 2029.
- Product Strategy: The introduction of the D-segment Avancier targets the 7-seat SUV market, expanding beyond the C-segment footprint of the current CR-V.
Scaling Production at the Prachinburi Facility
The core of Honda’s latest capital expenditure centers on its manufacturing hub in Thailand’s Prachinburi Province. Koji Iwanami, President and CEO of Honda Thailand, said the facility currently assembles six distinct models with a combined output ceiling of roughly 110,000 vehicles per year.
Operations at the plant currently run near full utilization. Out of current production volume, approximately 35,000 units head to export markets, while 75,000 units are absorbed domestically. By integrating two new vehicle programs by 2029, Honda expects to expand its local lineup to eight models and lift total capacity to roughly 150,000 units annually.
Engineering the Next-Generation e:HEV Powertrain
The manufacturing schedule begins with the Honda Avancier, positioned in the D-segment SUV class. This model sits above the CR-V, which currently occupies the C-segment with a maximum 5+2 seating configuration. The Avancier will deliver a 7-seater layout, addressing a product gap.
Crucially, the vehicle introduces a completely overhauled e:HEV hybrid architecture. The system couples a newly engineered internal combustion engine with a redesigned electric motor assembly. This specific configuration has not featured in any prior Honda production vehicle.
| Metric / Milestone | Current Operations | Projected Target (2029) |
|---|---|---|
| Total Active Models | 6 vehicles | 8 vehicles |
| Annual Production Capacity | 110,000 units | 150,000 units |
| Primary Manufacturing Hub | Prachinburi, Thailand | Prachinburi, Thailand |
| Capital Investment | — | 12 miliar Baht |
Filling the Portfolio Gap and Future B-Segment Expansion
Beyond the D-segment Avancier, Honda has outlined plans for a second vehicle belonging to the B-segment, scheduled for production between 2027 and 2029. Honda has not revealed design or specific details for this model. Some sources suggest it may be a B-segment SUV positioned lower than the HR-V, but this information has not been confirmed.
By 2029, the Prachinburi facility will be one of the Honda factories with the highest number of models produced in a single facility. Honda is positioning its Thai supply chain to service both local demand and broader international export channels. With the Avancier production expected to begin by late 2026, the company moves to capture market share in the large SUV space.
