Honda is set to stop assembling its Civic sedan in the Philippines. The move, it is reported, is being made to improve efficiency and centralise production in Thailand, where the company’s Asean hub is located.

The automaker has a plant located in the Philippine province of Laguna, and the facility makes the Civic – in its eight-generation form – as well as the City sedan. Parts shortages caused by the flooding in Thailand last year brought production to a halt in the Philippines, and it wasn’t until January 26 that City production resumed.

Civic production hasn’t; currently, vehicles are being imported from Japan, but once Thai production resumes sometime towards the end of March, Honda is set to switch to Civic imports from Thailand.

The Philippine plant can build 15,000 vehicles annually; in 2010, it produced 9,000 Citys and nearly 3,000 Civics, but in 2011, flood-induced parts shortages caused production to dip to 6,300 Citys and 1,500 Civics.

Honda took the decision to move Civic production to Thailand and produce only the City in the Philippines because significant demand growth isn’t expected for the more expensive Civic. In addition, the tariffs abolished in the region as a result of AFTA means profitability can be maintained while exporting from Thailand, the report adds.