Honda is betting on automation and artificial intelligence to transform its EV production process in China, reducing its need for floor staff by a hefty 30%. While robots haven’t yet fully replaced human workers, the tech Honda is rolling out—along with similar efforts from companies like Mercedes-Benz, BMW, and Dongfeng—suggests a future that might not be so bright for blue-collar workers.

The Japanese automaker recently kicked off production of the all-electric Ye P7 with local joint venture partner Guangzhou Automobile Group. The factory in Guangzhou uses automated guided vehicles, or AGVs, to move important car components throughout the factory, including heavy battery packs. Traditionally, human workers are required to transport parts throughout the factory.

Read: Honda Wants To Crack China’s EV Market With New Ye P7 Dual-Motor Crossover

In an interview with Nikkei Asia, Honda revealed that it’s also using AI to fine-tune the welding process for the Ye P7. The goal? To “reduce fixed costs as much as possible.” The company sees “electrification as an opportunity to overhaul the way we produce vehicles”—a chance to reimagine everything from the ground up.

The Ye P7 is an important vehicle for Honda. In most Western markets, the Japanese car manufacturer has lagged behind many of its competitors in releasing battery-electric vehicles that appeal to the masses. Given that China has quickly become the world’s single largest EV market, the automaker cannot afford to fall behind the competition, or else it could see its Chinese sales dry up.

Much like the S7 introduced earlier this month and built with Dongfeng, the P7 has an 89.8 kWh battery pack, and base models feature a rear motor with 268 hp. A dual-motor version is also available, boasting a combined 469 hp. Rear-wheel drive models have a quoted range of 404 miles (650 km) while the all-wheel drive version can apparently travel up to 385 miles (620 km) between charges.

Honda had a tough year in China, with sales dropping 30.9% to 852,269 units in 2024. This marks the first time in nine years that the Japanese brand has sold fewer than 1 million cars in the country. The decline is partly attributed to increased competition from local companies and a reduced demand for internal combustion engine vehicles. In response, Honda plans to halve production at an engine plant in Guangdong province and shift its focus more aggressively toward EVs.

Last year, new energy vehicles in China —comprising BEVs, PHEVs, and FCEVs—accounted for roughly 40% of all new car sales, with BYD leading the charge. In 2024, BYD sold 3.83 million passenger cars in the country, all of which were either BEVs or PHEVs. This is 8.5 times the number of cars it sold locally in 2019, and its rapid growth is coming at the expense of market share from legacy brands like Honda.

Read: Honda S7 Is A $36,000 Electric SUV That’s Not For US

Due to strong demand for electrified vehicles, Honda will close a manufacturing line at the Dongfeng Honda Engine factory at the end of this month, Nikkei Asia reports. This move will halve the annual production capacity of its joint venture, reducing it from 520,000 units to around 260,000.

In January, it ended production at a joint venture plant with Guangzhou Automobile Group that had an annual capacity of 240,000 vehicles. These changes will lower Honda’s local production capacity from 1.49 million as of early 2024 to just 960,000 units. Local media understands the company is offering early retirement programs to workers at the plants impacted by the closures.

One of its most important new models launched in China is the all-electric S7. The compact SUV is a direct competitor to the Tesla Model Y, Onvo L60, and Zeekr 7X. It has been launched in two guises, both with 89.8 kWh battery packs and up to 404 miles of range. Local prices start at ¥259,900, which is a touch under $36,000. Honda is also working on two new EVs – a larger crossover known as the P7 and a sleek sedan that was previewed last year by the GT Concept.

It’s been eight months since Honda previewed its China-only Ye S7, and now the production version has officially arrived. As the Japanese brand continues its push upmarket in various regions, this all-electric SUV doesn’t try to compete with the bargain-bin electric crossovers flooding the market. Instead, it’s aiming for something a bit more premium, but still relatively affordable, at least by American standards. The S7 starts at ¥259,900, which comes to about $35,800.

More: Toyota’s $15,000 Electric SUV Gets 10,000 Orders In Just 60 Minutes In China

Interestingly, the production model has dropped the ‘Ye’ from its name and is simply called the S7. It’s no Lamborghini Urus, but for a Honda, it’s a surprisingly daring design. In fact, it stands out in a way that no other Honda sold in markets outside of China does, which will help it cut through the noise of China’s crowded car market. The S7 is the product of Honda’s joint venture with Dongfeng and is set to compete with the likes of the Tesla Model Y, the Onvo L60, and the Zeekr 7X.

Powertrains and Range Options

At its core, the S7 is built on a dedicated EV platform and comes equipped with an 89.8 kWh battery pack. The base model features a single electric motor that delivers a modest 268 horsepower (200 kW) to the rear wheels. While not exactly thrilling, that output should be more than enough for everyday driving, and the more affordable variant has a claimed range of 404 miles (650 km) on the Chinese CLTC cycle.

For those craving more performance, there’s a dual-motor, all-wheel-drive version. This ups the ante by adding a 201-horsepower (150 kW) motor to the front axle, pushing total output to a more impressive 469 hp (350 kW). While that extra power and weight decrease the range to 385 miles (620 km), it’s still more than sufficient for most drivers.

In terms of dimensions, the S7 is 4,750 mm (187.0 inches) long, 1,930 mm (75.98 inches) wide, and 1,625 mm (64.02 inches) tall, riding on a relatively large 2,930 mm (115.4 inches) wheelbase, with a minimum ground clearance of 193 mm (7.6 inches). This puts the S7 in the range of your average compact SUV for exterior dimensions, but with a wheelbase that’s closer to, or even longer than, that of many mid-size SUVs. For comparison, the Honda Pilot has a shorter 113.8-inch (2,891 mm) wheelbase.

Inside, the S7 leans heavily into tech and luxury. The centerpiece is a 12.8-inch portrait-oriented infotainment screen perched in the center of the dashboard. Just ahead of the driver, there’s a 9.9-inch digital instrument cluster, and gone are the traditional wing mirrors, replaced by cameras and screens mounted on the doors.

The cabin of the electric Honda also features twin glass roof panels for that open, airy feel, and if you’re an audiophile, you can opt for a 16-speaker Bose sound system with speakers in the front headrests. While the luxury touches are nice, they’re not exactly groundbreaking, but they should appeal to buyers looking for something a bit more refined in the electric SUV space.

The Honda Prologue was a surprise hit as customers snapped up 33,017 of them last year. However, you might want to hold off on buying one as the company has announced a handful of improvements to the 2025 model.

While Honda was coy on specifics, they noted the entry-level front-wheel drive variant now has an EPA range of 308 miles (496 miles). That’s an increase of 12 miles (19 km) and the company noted the battery’s capacity remains unchanged at 85 kWh.

More: Honda Prologue Is On A Roll After Becoming GM’s Best-Selling EV In Q3

Dual-motor all-wheel drive variants also get a range boost as the EX and Touring trims can now travel 294 miles (473 km), which is an increase of 13 miles (21 km). The range-topping Prologue Elite sees a smaller 10 mile (16 km) increase to 283 miles (455 km).

The extra range is certainly welcome, but the upgrades don’t stop there. Quite the opposite as front-wheel drive variants now have a more powerful motor developing 220 hp (164 kW / 223 PS) and 243 lb-ft (329 Nm) of torque. That’s an increase of 8 hp (6 kW / 8 PS) and 7 lb-ft (9 Nm).

The dual-motor all-wheel drive variants haven’t been overlooked as they now produce 300 hp (224 kW / 304 PS) and 355 lb-ft (481 Nm) of torque. These are gains of 12 hp (9 kW / 12 PS) and 25 lb-ft (34 Nm).

Unsurprisingly, the upgraded outputs match those achieved by the 2025 Chevrolet Blazer EV. Unfortunately, there’s no Prologue Type R with the SS’ 615 hp (459 kW / 624 PS) dual-motor all-wheel drive system.

Despite the improvements, pricing remains uncharged as the electric crossover continues to start at $47,400. However, the destination charge has climbed from $1,395 to $1,450. On the bright side, all 2025 Prologues qualify for the $7,500 federal tax credit.

2025 Honda Prologue Pricing