Guan Cha Zhe Wang·2025-12-25 10:38Core Viewpoint - Honda plans to launch a pure electric version of its K-Car model by 2027 to compete with BYD, which has recently entered the K-Car market with its model Racco [2][3]. Group 1: Honda's K-Car Strategy - Honda's N-BOX model achieved impressive sales, reaching 200,000 units in 2024, making it the best-selling new car in Japan for three consecutive years [2]. - The N-BOX has a spacious interior and a price starting from 1.7 million yen, which has garnered strong consumer support [2]. - Since its launch in 2011, the cumulative sales of the N-BOX have reached approximately 3 million units [2]. Group 2: Market Context and Competition - The K-Car segment accounts for about 35%-40% of new car sales in Japan, with 1,202,100 units sold in 2024 [3]. - Currently, the K-Car market in Japan is dominated by local brands, with Suzuki holding a 38.8% market share, followed by Honda at 21.4% and Daihatsu at 18.3% [4]. - The introduction of BYD's Racco, which is designed specifically for the Japanese market and complies with local regulations, poses a significant threat to Japanese automakers [4]. Group 3: Electric K-Car Market Potential - The Japanese government offers subsidies for purchasing pure electric K-Cars, along with tax reductions in the second year of ownership, which could accelerate the adoption of electric vehicles if prices become comparable to gasoline cars [5].