Dongfeng Honda Q1 Sales Edge Up—Can ICE Stability and EV Breakthrough Reverse the Downturn?

In the first quarter of 2026, Dongfeng Honda achieved cumulative sales of 71,432 vehicles, marking a year-on-year increase, with January and February posting growth of 4.4% and 10.1%, respectively. This performance is particularly significant given the broader challenges facing joint-venture brands and the fact that new energy vehicle (NEV) penetration has surpassed 50%. Over the past five years, Dongfeng Honda’s annual sales plummeted from 820,000 units to just 325,800 in 2025, primarily due to its sluggish transition to electrification. Its "oil-to-electric" models, such as the e:NS1 and S7, received lukewarm market responses, and its new brand "Lingxi" has struggled to compete against aggressive domestic rivals. In response to these challenges, Dongfeng Honda is adjusting its strategy: it aims to stabilize its internal combustion engine (ICE) business—leveraging the CR-V’s industry-leading resale value—and introduced a more affordable HR-V in early 2026, priced around RMB 100,000, equipped with core technologies previously reserved for higher-end models. Simultaneously, the company is accelerating its electrification and intelligent driving initiatives. The upcoming e:NS2 will be exported back to Japan, and Dongfeng Honda is partnering with Momenta to co-develop advanced intelligent driving systems. Executive Vice President Cao Dongjie emphasized localized R&D and supply chain reforms, targeting a breakthrough in intelligent technology by 2027. Whether this strong start signals a temporary rebound or a genuine turning point remains to be seen.