Honda announced on April 3 that its new car sales in China fell 26.3% year-on-year to 60,449 units in March. The year-on-year decline reached the highest since July 2023 (down 32.8%). As local Chinese companies cut the prices of new energy vehicles such as pure electric vehicles (EVs) in February, customers are leaving their rivals.
Honda’s sales in China have been lower than the same period last year for two consecutive months. Looking at joint ventures, Guangqi Honda’s sales fell by 28% to 30,118 units, and Dongfeng Honda’s sales dropped by 24.6% to 30,331 units.
In mid-February, BYD lowered the prices of many models. The slogan “Electricity is lower than oil” was printed, implying that new energy vehicles are cheaper than engine vehicles, pushing consumers to switch to new energy vehicles.
Other local companies have also followed BYD’s price cuts, and price competition has intensified.
Honda’s sales in China from January to March fell 6.1% year-on-year to 206,907 units. Honda plans to launch new models and strengthen its product lineup to respond.