Honda China May Sales Drop 48.7% Year-on-Year, Accelerates EV Transition

Honda China reported new vehicle sales of 28,300 units in May, down 48.7% year-over-year, marking the second consecutive month with a sales decline approaching 50%. From January to May this year, Honda’s cumulative sales in China totaled 173,300 units, a drop of more than 30% compared to the same period last year. During the same timeframe, multiple Chinese NEV (new energy vehicle) manufacturers each delivered over 30,000 vehicles in May alone—meaning Honda’s total monthly sales across all its brands were roughly equivalent to the monthly volume of just one popular entry-level model. Currently, over 90% of Honda’s models sold in China are internal combustion engine vehicles, with fewer than 10 pure electric or plug-in hybrid models available. Its pace of launching new energy vehicles has clearly lagged behind market development. Amid the rise of domestic Chinese brands and the shrinking ICE vehicle market, sales of many of Honda’s core models have plummeted, leaving only two models across its entire portfolio with monthly sales barely exceeding 10,000 units. To address these market shifts, Honda plans to gradually introduce three new models in China starting in 2027. These will include gasoline-powered, hybrid, and battery-electric variants—specifically, a next-generation Accord, a new model equipped with the fifth-generation i-MMD hybrid system, and a BEV developed on a China-exclusive platform.