Honda Motor (TYO:7267) and Toyota Motor (TYO:7203) reported sharp sales declines in China in April as domestic competition intensified and weaker consumer demand weighed on the market, Nikkei reported Tuesday.

Honda's China sales fell 48% from a year earlier to 22,595 vehicles, with demand slowing for core models including the Accord. Sales at its joint venture with Guangzhou Automobile Group dropped 64%, while deliveries at its venture with Dongfeng Motor Group fell 31%, according to the report.

Honda said slower model updates hurt performance as Chinese brands and rivals accelerated new vehicle launches, the report said.

Toyota's April sales in China declined 25% to 106,500 vehicles. The company said higher gasoline prices weakened demand for combustion-engine cars, while some consumers delayed purchases ahead of May Day promotions, according to the report.

Sales at FAW Toyota fell 38%, while GAC Toyota posted a 10% decline. Deliveries for Toyota's Lexus marque dropped 29%. In contrast, Toyota's EV sales in China jumped 88% to 17,700 units. For the first four months of the year, Honda's China sales fell 28%, while Toyota recorded a 10% decline, the report said.

China's overall vehicle sales dropped 20% during the period, according to the China Association of Automobile Manufacturers, amid weak domestic demand and reduced tax incentives for electric and new-energy vehicles, according to the report.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)