At the recent Beijing Auto Show, Honda China showcased several new models, including three new models under the brand "Ye": "Ye P7," "Ye S7," and "Ye GT CONCEPT."
Previously, Honda China held a special launch event for the new electric brand "Ye," claiming it was tailored specifically for the Chinese market. However, the brand name failed to gain approval from Chinese users. Many netizens criticized, saying, "Ye" sounds like "fire transformation" when broken down, resembling cremation. "Another hearse hits the market? Directly send off in one go!"
Honda China is actually quite anxious. From 2023 to the first quarter of this year, its sales in the Chinese market have been continuously declining, with a sharp drop of over 26% in March this year. The newly controversial electric brand "Ye" may not be the antidote for Honda China.
Another "hearse"?
During the auto show, Honda announced an accelerated push towards electrification in China, with plans to have a lineup of 10 pure electric vehicles by 2027 and achieve 100% sales of electric cars by 2035.
The new "Ye" brand is undoubtedly Honda's hope in China.
Among the three debut models of the "Ye" brand, the Ye P7 and Ye S7 produced by Honda's joint ventures GAC Honda and Dongfeng Honda will be launched by the end of 2024, while the Ye GT CONCEPT will enter mass production in 2025.
According to the plan, the "Ye" brand will introduce six models by 2027, and Honda aims to achieve 100% electrification in the Chinese market by 2035.
By launching a new brand specifically for the Chinese market, Honda aims to demonstrate its commitment to the new energy vehicle market in China.
Honda explained that "Ye" means "bright and shining," aiming to "allow drivers to enjoy the pleasure of driving and unleash their inner desires."
However, Chinese netizens seem unimpressed with the brand's name, with some criticizing it for sounding like "huo hua" which means cremation, implying it's another hearse hitting the market.
Previously, the ideal pure electric MPV model MEGA faced criticism for its hearse-like design, impacting its sales and reputation. Just as the MEGA controversy settled, Honda's "Ye" has reignited Chinese users' enthusiasm for criticism.
The founder of Carfans, @Sun Shaojun09, recently criticized on Weibo that Honda's recent press conference in China lacked discussion on the products themselves, as the focus seemed to be more on the "Ye" brand name rather than the actual products.
"With the last industry-shaking name being JiPai, also from Honda. JiPai's name, like Nissan's Bluebird, means male and female in Minnan dialect. However, while the Bluebird's name has a long history, the new name JiPai is truly unimaginable. So, seeing the brand name 'Ye' today, I can only say, well done, Honda. As for Honda's announcement of launching 6 new models by 2027 under this brand, and reiterating China's achievement of 100% electrification by 2035, I can't help but imagine how strong domestic brands will be by then, and can only offer my best wishes."
With plummeting sales, can teaming up with Huawei turn the tide?
Behind Honda's consecutive launches of new brands lies anxiety over sales of new energy vehicles.
Despite the increasing penetration of new energy vehicles, Honda's sales in China, still heavily reliant on gasoline cars, have seen a significant decline.
Data shows that Honda's sales in China in 2023 were 1,234,181 units, a 10.1% year-on-year decrease.
Among them, GAC Honda's sales in 2023 reached 620,469 units, down by 13.9% year-on-year; while Dongfeng Honda's sales in 2023 were 613,712 units, a 5.9% year-on-year decrease.
In the first quarter of this year, Honda's performance in China continued to face challenges. Data indicates that Honda's sales in China in the first quarter of this year were 206,900 units, down by 6.11% year-on-year. GAC Honda saw an 8.11% year-on-year decline, while Dongfeng Honda experienced a 3.80% decrease. In the latest figures for March, Honda's new car sales in China dropped by 26.3%.
Under the pressure of anxiety, Honda China is not only launching a new brand but also exploring the use of Chinese suppliers' technology and resources in new car models.
According to Honda China, vehicles under the "Ye" brand will incorporate technologies from Chinese communication equipment company Huawei, power battery company CATL, voice recognition company iFlytek, among others, with the new cars featuring Huawei's XSCENE light field screen.
Honda China states that this marks the first time Huawei's light field screen is being used in the passenger side of a car, enabling interaction through sound, light, and aroma devices.
However, in terms of smart car technologies, what attracts Chinese users the most from Huawei are the HarmonyOS smart cockpit and intelligent driving features. The extent to which the inclusion of Huawei's light field screen will enhance the appeal of Honda China's new car models remains uncertain.
When it comes to smart technologies, Japanese automakers, including Honda, have indeed fallen behind.
Earlier reports indicated that Toyota plans to collaborate with Toyota, Huawei, and Momenta to develop autonomous driving capabilities. Honda, too, needs to accelerate its efforts in smart technologies to catch up.
