Switchover of Southern/ Northern Honda, 30% Change Each in July

At present, Honda Auto announced its sales in China of July. It has nothing to be surprised about its 51 thousand sales and decrease 1.7% over the same period of last year. However, it is dramatically that sales figures of two joint ventures of Honda are serendipity.

According to statistics, GAC Honda sold 32,007 at the first half this year, which increased 30% in July over the sales of same time of last year, but Dongfeng Honda sold 19,133 only this year, which decreased 30% over last year in coincident. However, it was a switchover situation if we go back to the same period of last year. Dongfeng Honda sold 27,667 of the first half year of 2012, which increased 30% over the sales of first half year of 2011, but GAC Honda sold 24,378 only in 2012, which decreased 20% over sales of 2011. Is it a coincident or it has another story inside?

Honda has not influenced too much among deeply declined Japan auto sales at the first half this year. Honda sales remain the same in July over the sales of the same period of last year. July 2011, Honda sold 51,399, and the figure was 52,045 in July 2012. This July Honda sold 51,140. According to Honda’s anticipation, the situation of “one man's loss is another's gain” is not a surprise.

Some analysts believe that replacement strategy contributes to GAC Honda sales. On the other side, CR-V stepping down altar brings Dongfeng Honda into sales winter. Is it the fact?

“GAC Honda sales increase is because of new model join in. GAC Honda published Crider into market with a good sales record.” Shi Zhong, an analyst of auto industry told reporter “promotion of replacement is made by dealers from Guangzhou, which is regional. It does not powerful enough to influence sales over nation.”

Jia Gu, another analyst of GAC Honda, has a similar opinion with Shi Zhong’s “Sales record is very good after the first month after Crider launching market. Besides, contributed by promotion strategy, all series of GAC Honda sold well.” As it known, Crider sold 150 thousand already since it is launched market. Besides, GAC Honda provides more discount for 8th Accord for new Accord coming.

In fact, GAC Honda declines 30% sales, which is because of Accord slacked in July last year. As it known, GAC Honda sold 11,983 Accord in 2011. However, the figure declines to 6,666 in 2012, which caused sales of GAC Honda declined. Accord’s market performance is not stable, but Honda still looks forward of it. The reason Honda remains 750-thousand-sales goal under common slack performance of Japan auto at the first half this year is because of the launch of 9th Accord.

Meanwhile, Dongfeng Honda is struggling with its CR-V market performance. CR-V was definitely a trump of Dongfeng Honda.” Shi Zhong told media that “but CR-V has been suppressed too much by its competitors.”

Bin Chen, vice executive president of Dongfeng Honda told reporter of that “the main reason for decline in July is because the company has not launched any new models into market and sales of CR-V steps down. But at the same time of last year, we have some new models such as Aili Gentry put into market, and refresh CR-V pulls sales enough as well. But now, SUV segment is full of increasing competition which influences sales of CR-V.”

“Product line of Dongfeng Honda is very limited, which too much rely on CR-V.” Shi Zhong said in sum. “CR-V is so important model that Dongfeng Honda even cannot afford to lose it. We are looking for an opportunity to change the situation.”

“We definitely need to balance our sales with CR-V and other models. At present, we need to guide sales to Jada. Consider about Jada is new launched, so our marketing activities will center on Jada sales. ” Bin Chen holds a optimize opinion on CR-V stepping down altar. “Situation will change at the next half this year after new model launching market, and decline tendency may stop as well. ”