Honda’s China Sales Plummet Over 35% in First Seven Months of 2024, July Figures Hit a Cliff-Like 44% Decline

Deep News
08/07

Honda’s automotive sales in China have hit a severe low, with recent operational data showing no signs of slowing down in the decline, as the downturn continues to deepen.

From January to July this year, Honda China recorded cumulative sales of only 230,870 vehicles, a sharp year-on-year drop of 35.9%, shrinking its overall sales volume by more than one-third.

Looking at just the month of July, Honda China sold a mere 25,052 vehicles, a 44.1% drop compared to the same period last year, with the rate of decline accelerating visibly, almost resembling a sharp cliff-like reduction.

Looking back, the decline was already evident earlier: Honda China sold 32,474 vehicles in June, down 44.5% year-on-year, and total sales for the first half of the year stood at 205,818 units, a 34.7% decrease. For nearly six months, the year-on-year decline has remained at a high level, with no signs of recovery.

According to recent reports from Japanese media, automotive parts supplier F-TECH, which specializes in manufacturing chassis components, issued an internal announcement on August 3, stating it would cut 500 jobs across its major production bases in China, a reduction equivalent to roughly half of its total workforce in the region.

The report explicitly notes that the persistent decline in sales of Honda, a core client of the company, has directly led to a sharp drop in orders at F-TECH's Chinese factories, pushing overall operational capacity to extremely low levels, making it unsustainable to maintain the existing workforce and production scale.

This is not an isolated plight faced solely by the Honda brand. With the rapid growth of China's new energy vehicle industry, traditional fuel car brands like German BBA and established Japanese automakers, which have dominated the domestic passenger car market for decades, are being steadily pushed back by the technological and product advantages of domestic new energy vehicles. The entire industry is facing a widespread loss of market share, further confirming that the overall decline of the traditional fuel vehicle sector is an irreversible trend.

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