Honda China Denies Rumors of Demanding Sharp Price Cuts from Suppliers

On September 2, in response to reports that Honda had instructed its suppliers to significantly lower prices, Honda China stated, "This is not an official statement released by Honda." Honda China added that the company has consistently worked with suppliers on collaborative innovation and ongoing cost optimization efforts to enhance its global competitiveness in areas such as R&D, production, and procurement. According to a Reuters report published the same day, Honda plans to save ¥1.5 trillion (approximately RMB 63.088 billion) over the next four years through fiscal year 2030, targeting a 30% cost reduction in three key areas: stamped and forged components, electronic parts, and software-defined vehicle-related components. Additionally, Honda and Nissan announced on September 1 that they will jointly develop a standardized electronic control unit (ECU) for software-defined vehicles, aiming to launch vehicle electronic architectures based on this ECU starting in fiscal year 2029.