Honda Motor(US:HMC) Tai Mei Ti A P P·2025-07-30 01:25Core Viewpoint - Honda is undergoing a significant retreat from the Chinese market, marked by the closure of production facilities and a disappointing performance in the electric vehicle sector [1][2]. Group 1: Production Changes - Honda China announced the closure of the Dongfeng Honda second factory in Wuhan by November 2024, which was previously transformed into a new energy vehicle production base [1]. - GAC Honda will also close its factory in Guangzhou by October 2024, indicating a broader trend of production facility shutdowns [1]. - The Dongfeng Honda second factory is expected to be repurposed for commercial real estate development, following the precedent set by the first factory [1]. Group 2: Sales Performance - Honda's electric vehicle sales in China have been underwhelming, with cumulative sales from July 2024 to June 2025 totaling less than 24,000 units, averaging under 2,000 units per month [2]. - GAC Honda's e:NP1 and e:NP2 models sold 2,062 and 3,312 units respectively over the past year, while Dongfeng Honda's e:NS1 and e:NS2 models sold only 1,473 and 940 units [3]. - Overall, Honda's new car sales in June 2025 showed a significant decline, with Dongfeng Honda's sales down 23.62% year-on-year and GAC Honda's down 12.61% [7][8]. Group 3: Market Position and Challenges - Honda's decline in the Chinese market is attributed to a combination of factors, including a failure to adapt to the rapid growth of the electric vehicle market and competition from domestic brands like BYD and Geely [16][21]. - Despite having an early start in the electric vehicle segment, Honda's sales have plummeted since reaching a peak in 2020, with Dongfeng Honda's sales dropping by 49.64% and GAC Honda's by 41.60% by 2024 [9][13]. - The company's attempts to pivot towards electric vehicles have been criticized as insufficient, with new models failing to gain traction in a competitive market [17][20].