GAC Honda Sales Plunge Nearly 70% Amid EV Transition Struggles

GAC Group's 2025 earnings forecast indicates a projected net loss of up to RMB 9 billion, a sharp decline from the RMB 8.24 billion profit recorded in the same period of 2024. The company attributes this downturn to intensifying industry competition, weaker-than-expected sales, and adjustments in its new energy vehicle (NEV) product lineup. Total annual sales reached only 1.7215 million units, falling significantly short of its target of 2.3 million units. Among its subsidiaries, GAC Honda performed the worst, with annual sales of just 351,900 units—a 25.22% year-over-year drop. In January 2026 alone, its sales plummeted by 69.86% year-over-year to merely 4,558 units. The company’s flagship NEV model, the P7, has been selling only around 1,000 units per month. Despite a promotional price cut of RMB 50,000 (a 25% reduction), sales have failed to recover meaningfully. Industry insiders point out that GAC Honda’s delayed transition to new energy vehicles and outdated marketing strategies are the primary reasons behind its current predicament.