Honda's Terminal Car Sales in China Decline and Future Plans

TapTechNews August 5th news, Honda China today announced the latest terminal car sales situation: the terminal car sales in China in July was 52,567 units, and the cumulative terminal car sales of Honda in China from January to July was 468,473 units, a year-on-year decrease of 24.4%.

As a comparison, the cumulative terminal car sales of Honda in China in June was 68,966 units, the cumulative terminal car sales of Honda in China in May was 66,202 units, and the terminal sales of Honda in China in July 2023 was 89,691 units. Based on this, TapTechNews calculated that the car sales of Honda China in July decreased by 41.39% year-on-year and 23.78% month-on-month.

Honda has been declining since reaching the peak sales volume of 1.627 million units in China in 2020, and then failed to stop the decline for three consecutive years.

On July 25th, it was reported that Honda announced that it will close one of its factories in China and stop the car production work in another factory. Honda will reduce the gasoline car production capacity by 30% in the world's largest auto market - China, and will cut about 500,000 units of production capacity through measures such as closing factories, which is equivalent to 10% of Honda's global production.

According to the report, Honda will reduce the annual gasoline car production capacity in China from 1.49 million units to 1 million units. On July 26th, Honda China officially issued a statement saying that Honda is further accelerating the electrification transformation in China, and the new Dongfeng Honda all-electric dedicated factory under construction will be put into operation in September 2024, and the new GAC Honda new energy factory will be put into operation in November 2024.