DHAKA: The Thai unit of Honda Motor Co has cut production at its Ayutthaya plant to 60 per cent of capacity to reflect weak domestic demand, voicing concerns that sales may fall short of its target this year after months of political unrest.

Thailand’s auto sector, South-east Asia's biggest, is one of the more visible victims of the weakened economy and unrest which culminated on Thursday in army chief General Prayuth Chan-ocha taking control of the government in a coup.

The sector has fired more than 30,000 subcontracted workers this year and slashed production, as sales plunge after months of political unrest that threatens to drive some manufacturers offshore.

The Japanese carmaker has also decided to delay by between six months and a year the startup of a new US$530 million plant from its previously planned April 2015 date, said Pitak Pruittisarikorn, executive vice president at Honda Automobile (Thailand) Co.

BDST: 2013 HRS, MAY 22, 2014