Honda Motor(US:HMC) Xi Niu Cai Jing·2025-11-17 08:18Core Insights - Honda is facing significant challenges in its electrification efforts in China, with disappointing sales figures for its newly launched electric SUVs S7 and P7 [2][3] - The company has decided to delay the launch of its flagship electric model, the 烨GT, to 2026 to allow for better design and configuration adjustments [2] - Honda's overall vehicle sales in China have declined sharply, with a 20.62% drop in October 2025 compared to the previous year [2] Group 1: Market Performance - Honda's electric models, including e:NS1, e:NP1, and others, have shown lackluster sales, with e:NP2 selling only 735 units in September [3] - The S7 and P7 have sold just over 1,000 and 1,400 units respectively since their launch, indicating a weak market reception [2][3] - The competitive landscape is intensifying, with local brands gaining market share and offering more attractive pricing and features [3] Group 2: Strategic Adjustments - Honda is optimizing its production capacity, reducing total capacity from 1.49 million to 1.2 million vehicles, while also launching two new energy factories [4] - A significant acquisition is underway, with GAC Honda set to acquire 50% of Dongfeng Honda's engine division for approximately 1.172 billion yuan, enhancing supply chain stability [4] - Honda is pursuing strategic partnerships with local firms like Momenta and CATL to bolster its electric and intelligent vehicle capabilities [4] Group 3: Global Strategy Changes - Honda has revised its global electrification strategy, lowering its target for electric vehicle sales from 30% to 20% by 2030 and pausing some EV model developments [5] - This strategic shift may impact Honda's future electric vehicle offerings in the Chinese market, raising concerns about its competitiveness [5]