*This content was translated by AI.
Global automaker Honda is facing its greatest crisis since its founding, halting production of key models and closing factories after experiencing unprecedented sales slumps in China, the world's largest automobile market. According to China-based automotive media outlets, Honda's new car sales in China in April plummeted 48.3% year-on-year to just 22,595 units. Cumulative sales from January to April this year also fell 28% year-on-year to 145,065 units, signaling a near-total loss of market dominance. As a result of this sales cliff, Honda has shifted major models produced through its joint ventures, GAC Honda and Dongfeng Honda, into inventory clearance and order cancellation phases, launching a massive lineup reduction.
First, the compact SUV ZR-V, launched in 2022 to great expectations, has seen new allocations halted. Dealers are aggressively clearing inventory by slashing prices to around 84,800 yuan, less than half the launch price of 210,000 yuan. The Fit, a symbol of China's small car market since 2003, has also halted new orders and is effectively being phased out alongside its sibling model, the Life. Even the Accord e:PHEV, a cornerstone of Honda's electrification strategy, has seen no confirmed production allocations since ending a radical discount campaign in February. The sedan model, Integra, has significantly simplified its lineup by eliminating manual transmission variants. The e:NS1, Honda's first pure electric SUV, has also disappeared from the market amid fierce competition from Chinese local EV brands such as BYD and Xiaomi.
The slump in individual models has led to the consolidation of production bases. The Guangzhou Huangpu plant, which produced the ZR-V and Fit, is scheduled to cease operations in June, with the Wuhan plant set to close by 2027. Through these measures, Honda is reducing its internal combustion engine vehicle production capacity in China from 1.2 million units annually to around 720,000 units, a cut of approximately 40%, as it forces through painful structural reforms. In particular, the fact that Guangzhou Honda's April sales plummeted by more than 72% year-on-year clearly demonstrates that Japanese car brands are being rapidly excluded from Chinese consumers' consideration sets.
Meanwhile, according to local media analysis, Honda's self-revival in the Chinese market is deemed virtually impossible. This is not only because major Japanese brands such as Toyota are also showing similar downward trends, but also because the surge of Chinese domestic brands continues. Industry experts predict that the shift in power within the Chinese automobile market will accelerate further.
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*This content was translated by AI.
