On April 3, Honda China announced its vehicle sales figures in China for January to March 2024, totaling 206,907 units. This represents a 93.9% achievement of the company’s sales target, marking a 6.1% decline year-on-year. Of these, GAC Honda accounted for 108,361 vehicles, while Dongfeng Honda's sales totaled 98,546 units during the same period.
According to earlier data released by Honda China, the cumulative sales for January and February totaled 60,449 units. In March, Guangqi Honda sold 30,118 units, while Dongfeng Honda sold 30,331 units.
As a point of comparison, Honda's sales in China for March of the previous year stood at 82,041 units. A straightforward calculation reveals that sales have declined by 26.31% year-over-year.
This trend of decline had already become apparent last year, with data showing that Honda's sales in China amounted to 1.2342 million vehicles in 2023, marking a 10% drop compared to the previous year. Due to shrinking demand, Honda has planned to cut its production capacity by 20%.
So, why is Honda gradually losing its appeal among Chinese consumers? Insights can be gleaned from the sales performance of the Honda Lingpai. According to Car Emperor's monthly sales data, Guangqi Honda Lingpai's sales hit an all-time low of just 61 units in February, a stark contrast to its peak periods when monthly sales could exceed 20,000 units.
A significant portion of Honda Lingpai's target audience has been siphoned off by domestic new energy models such as BYD Qin PLUS DM-i, GAC Aion S, and Geely Emgrand L. These domestic models boast substantial advantages over the Honda Lingpai in terms of power, features, and even fuel efficiency, an area where Japanese cars have traditionally prided themselves.
With the advent of new alternatives that are not only more affordable but also offer a superior experience, and given that the target audience comprises price-sensitive consumers, it's only natural that there's been a dip in sales.
