Japanese automotive giant Honda’s sales in China have nearly halved for two consecutive months, with monthly sales in both April and May falling below 30,000 vehicles, a year-on-year decline of nearly 50%.
According to a report by “21st Century Business Herald” on June 5th, the latest data released by Honda China showed that in May 2026, Honda’s retail car sales in China were 28,279 vehicles, down 48.68% year-on-year; in April, Honda’s retail car sales in China were 22,595 vehicles, a 48.28% decrease compared to the same period last year. This indicates that Honda’s sales in China have almost halved for two consecutive months, with monthly sales remaining below 30,000 vehicles for two consecutive months.
From January to May this year, Honda’s cumulative retail car sales in China were 173,344 vehicles, a decrease of 32.47% year-on-year.
Honda’s joint ventures in China are also facing pressure. Taking GAC Honda as an example, GAC Group’s financial report shows that GAC Honda’s sales dropped to 351,900 vehicles in 2025. The latest production and sales data indicates that GAC Honda’s cumulative sales in the first five months of 2026 were 54,219 vehicles, down 56.50% year-on-year; with only 9,058 vehicles sold in May, a 32.45% decrease compared to last year.
The decline in sales has also affected Honda’s production system in China. A report by “Nikkei Asia” in September 2024 stated that Honda’s joint venture with Dongfeng Motor Group, Dongfeng Honda Automobile, began soliciting voluntary early retirement of employees at the end of August 2024, involving production workers at three major fuel vehicle factories. Previously, GAC Honda also sought voluntary early retirement for its employees, with about 1,700 people agreeing to leave, accounting for 14% of the total employees of the local joint venture company. In July 2024, Honda announced a reduction of about 290,000 units of gasoline vehicle production capacity in China, marking the first time Honda has cut production capacity in China.
It’s not just Honda, other major Japanese brands in the Chinese market are also experiencing declining sales. “21st Century Business Herald” previously reported that in April 2026, Toyota’s sales in China decreased by 25% year-on-year to 106,500 vehicles; Nissan sold 32,100 vehicles, a 30.8% decline year-on-year. Along with Honda, the sales of these three Japanese carmakers in China all declined year-on-year that month.
In recent years, competition in the Chinese automotive market has intensified, with ongoing price wars. With local new energy vehicle companies continuously introducing low-cost models, traditional fuel vehicles and joint venture brands are under persistent pressure. Japanese car manufacturers, which have traditionally relied on fuel vehicles, hybrid cars, and joint venture channels to establish market dominance, are now being impacted by local new energy vehicle brands.