Honda Motor says China sales drop 16.8% YoY in Sept. 2022

Shanghai (Gasgoo)- Honda Motor announced today its monthly China sales reached 101,069 units in Sept. 2022, dropping 16.8% from a year earlier, while also tumbling 25.97% from the previous month.

As for the sales of the two joint ventures, GAC Honda saw its Sept. sales edge down 0.71% over a year ago to 60,851 units, while Dongfeng Honda posted a two-digit year-on-year drop of 33.15% by selling 40,218 vehicles last month.

For the first nine months of 2022, Honda Motor sold 1,050,383 vehicles across China, reflecting a 5.2% decrease over the year-ago period, versus the 3.8% year-on-year decline in the Jan.-Aug. sales.

The year-to-date sales of vehicles armed with the hybrid powertrain system "Sport Hybrid" added up to 154,966 units, sliding 8.64% compared to the same span of 2021.

With 549,030 vehicles sold in total, GAC Honda clocked a 1.6% growth over a year ago in its Jan.-Sept. sales. Nevertheless, a year-on-year dip of 11.64% confronted Dongfeng Honda's year-to-date sales, which stood at 501,353 units.

Honda Motor (China) Investment Co., Ltd. signed an agreement with its two Chinese partners, namely Dongfeng Motor and GAC Group, on August 31 to build a joint venture dedicated to power battery procurement at the end of September this year.

Named HDG (Beijing) Trading Service Co., Ltd. ("HDG"), the soon-to-be-launched joint venture will be registered in Beijing. Honda China, Dongfeng Motor, and GAC Group will invest in the joint venture at a ratio of 50:25:25.

Meanwhile, Honda China also inked an MoU (memorandum of understanding) with CATL to deepen their strategic cooperation, in a bid to build a long-term stable power battery supply-demand mechanism.

Currently, GAC Honda and Dongfeng Honda purchase EV batteries from CATL separately. In the future, the battery procurement of both joint ventures will be managed by HDG.