Honda's sales in China plummeted in the first half of the year, a year-on-year decrease of 21.5%!

On July 4, Honda officially announced the terminal car sales volume in China for June 2024. The data shows that Honda's cumulative sales of terminal cars in China were 68,966 in June this year, a year-on-year decrease of 39%. And Honda's cumulative sales of terminal cars in China from January to June this year were 415,906, a year-on-year decrease of 21.5%.

According to previous data, Honda's most glorious time was 2020, with a total annual sales volume of 1.627 million vehicles. But it began to decline afterwards, with sales volumes in the Chinese market in 2021-2023 respectively at 1.5615 million vehicles, 1.3731 million vehicles, and 1.2342 million vehicles, year-on-year decreases of 4.0%, 12.07%, and 10.12% respectively.

The continuous decline of Honda in the Chinese market is also a microcosm of all foreign brands in recent years. The decline in sales is partly due to the rise of local Chinese car brands, which has made the market competition more intense, especially in the new energy market. These brands are constantly improving in terms of product innovation, cost-effectiveness and service quality, and they pose great pressure on foreign brands led by Honda.

On the other hand, Honda's layout in the field of electric vehicles is relatively late. Compared with some brands that started early in electrification and intelligence, Honda lacks a certain market competitiveness, which has led to Honda's relatively low share in the electric vehicle market and a squeeze and impact on the fuel car market.

In the face of the current dilemma, Honda has taken a series of measures, increased R&D investment in electric vehicles, and clarified the electrification strategy. In May of this year, Honda announced a series of business initiatives centered on automobile electrification, including the advancement of electrification goals, reforms in procurement and production structure, electrification product line strategy, financial strategy and other aspects.

Targeting the domestic market, Honda will launch 10 pure electric models by 2027, and by 2035, the proportion of pure electric vehicle sales will reach 100%. In addition to the existing e:N series, it will also enhance brand image and enhance market competitiveness through the newly released pure electric vehicle brand "Yao". It is believed that with the gradual implementation and landing of these measures, Honda will achieve good results in the Chinese new energy vehicle market.