March 31, 2025 For a number of years, auto plants have employed single purpose robots and automation. But Honda has taken this even further and hasl implemented advanced AI driven automation technologies at its Guangzhou, China, electric vehicle (EV) plant, resulting in a 30% reduction in human labour.

The factory utilizes Automated Guided Vehicles (AGVs) to transport components, including heavy battery packs. Heavy tasks like movement of vehicles and battery packs have typically been done by humans.

In addition the assembly now employs AI-enhanced welding processes which the company claims improves efficiency and reduces fixed costs.

This strategic move is part of Honda’s broader initiative to overhaul vehicle production in response to the growing demand for EVs. By integrating automation, the company aims to enhance production efficiency and maintain competitiveness in the rapidly evolving automotive market. It has also offered an opportunity to totally redesign the manufacturing process to reduce the need for human labour.

While Honda has not announced layoffs associated with these changes, the significant reduction in manual labor underscores the industry’s shift toward automation. Honday is predicting a reduction of as much as 30% of human labour.

While this trend raises concerns about potential job displacement, this is still the thin edge of the wedge.

In such a highly comptetive industry other car companies will be forced to adopt similar technology and reduce human labour accordingly.

And we are on the cusp of the integration of humanoid robots into manufacturing processes. iexpected to hit factory floors as early as 2026. Humanoid robots are already in trials at BMW plants. When these hit the factory floor expect additional and severe job losses.