Gasgoo Munich- Honda China released April sales data on May 11, revealing a sharp downturn. Terminal sales in the Chinese market slumped to 22,595 units — a 48.3% year-on-year drop that nearly cut volumes in half. For the first four months of the year, cumulative sales reached 145,065 units, down 28%. The figures underscore a clear downward trajectory for Honda in China, where market pressure continues to mount.
Breaking down the joint ventures, GAC Honda moved just 5,100 units in April — a 72.42% plunge from a year ago and an 80.6% collapse from March. Its January-to-April tally fell 59.39% to 45,161 units. Dongfeng Honda, while withholding specific figures, is also seeing volumes retreat sharply from their peak.
Image Source: Honda China
The persistent slide reflects a dual squeeze: a shrinking internal combustion engine (ICE) base and a lagging electric transition. Honda’s new-energy vehicle sales in China remain a small share of the total, with monthly volumes for some pure-electric models too low to provide meaningful growth support. Meanwhile, domestic rivals and other joint ventures are rapidly scaling up their NEV offerings, further compressing Honda’s market space.
Confronting this downturn, Honda has initiated capacity adjustments in China. Reports indicate that a GAC Honda plant dedicated to internal combustion models will cease production in June 2026 due to aging lines, while certain production lines at Dongfeng Honda’s Wuhan facility are slated for closure in 2027. Industry analysts argue that Honda’s core issue lies in its slow electrification pace and sluggish product iteration. Without a breakthrough in its new-energy strategy, its market share in China is likely to keep shrinking.
The latest figures once again highlight the immense transition pressures facing traditional joint ventures in China. For Honda, the key to reversing its sales decline will hinge on accelerating the rollout of electric vehicles, optimizing its production capacity, and better aligning with shifting consumer demands in the Chinese market.
