Copyright FOURIN, Inc. 2022
Honda Motor in China: New Coronavirus Negatively Impacts Growing Sales Trend
Honda Motor’s 2019 passenger vehicle sales in China (announced by Honda Motor China Investment) increased by 8.5% year-on-year to 1.55 million units, setting a new record high. The sales volume of seven models – Civic, CR-V, XR-V, Accord, Crider, Vezel and Fit – exceeded 100,000 units. In addition, the Civic sold over 200,000 units for the second consecutive year and the Accord and CR-V sold over 200,000 units each for the first time. Honda increased its market share in China 1.3pp to 7.5% due to the overall contraction of the market. Looking at Honda’s local manufacturing subsidiaries, Dongfeng Honda increased sales 13.2% to 789,000 units and GAC Honda boosted sales 4.1% to 766,000 units. Dongfeng Honda, which has been operating beyond its production capacity, has launched a new plant in March 2019, surpassing production of GAC Honda in 2019.
Honda’s sales in 2020 are intended to surpass 2019’s results. GAC Honda plans to boost production capacity and both joint ventures intend to step up product launches. In 2020, Dongfeng Honda plans to release the Civic hatchback and GAC Honda is scheduled to release the new Fit. As part of their electric vehicle strategies, Dongfeng Honda plans to launch the CR-V PHEV and GAC Honda intends to release the Crider HEV. The Crider will become the 7th HEV model launched in China after the Accord, Inspire, CR-V, Breeze, Odyssey and Elysion.
Meanwhile, sales of Dongfeng Honda, whose production plants are located at the epicenter of the new coronavirus, were negatively affected by the pandemic. In an effort to minimize the impact of the new coronavirus, production and sales revisions were underway as of February 2020.