On September 4, Honda released its terminal car sales data for August 2024 in China. The data shows that Honda's terminal sales in China for August 2024 were 56,959 units, and the cumulative terminal sales from January to August 2024 reached 525,432 units, a year-on-year decline of 27.2%.
In July, Honda's terminal sales in the Chinese market were 52,567 units, showing a slight recovery in August. According to public information, Honda's terminal sales in China in August 2023 were 102,257 units, indicating a year-on-year sales decline of 44.298% for August this year.
On top of the previously announced production capacity reduction of 50,000 units, Honda further plans to reduce its annual production capacity in China by 200,000 units as of August 7, and coordination efforts are underway for this adjustment. According to the plan, Honda's current annual production capacity in China is expected to decrease from 1.49 million units to around 1.24 million units. Of this reduction, Honda intends to cut 490,000 units of gasoline vehicle capacity. On the other hand, the production capacity of two electric vehicle factories set to begin operation within this year will increase by 240,000 units.
To cope with increasingly stringent emission regulations and competitive pressure from Chinese car brands, Honda had earlier signed a strategic cooperation memorandum with Nissan and Mitsubishi. The three companies will collaborate on electric vehicles and intelligent technology, sharing R&D costs and accelerating progress toward carbon neutrality.
