In the first half of 2024, Toyota sold 694,700 new vehicles in China, down 17% year-on-year. Of this total, FAW Toyota sold 274,100 units, a 27% decline; GAC Toyota sold 341,100 units, down 6%; and Lexus sales totaled 71,900 units, falling 16% year-on-year. During the same period, Honda’s sales in China dropped sharply by 35% to 205,800 units, marking its fifth consecutive year of decline. GAC Honda sold 89,400 units, down 46%, while Dongfeng Honda sold 116,400 units, a 22% decrease. Monthly figures further highlight the accelerating downturn. In June 2024 alone, Toyota’s sales in China fell 27% year-on-year to 115,300 units, while Honda’s sales plummeted 45% to just 32,500 units—the lowest monthly sales figure in its history in the Chinese market. Market data shows that the penetration rate of new energy vehicles (NEVs) in China is rising rapidly. In April 2024, the retail penetration rate of NEV passenger cars in China surpassed 60% for the first time, climbing further to 62.9% in May. Among domestic brands, NEV penetration reached 80.1%, compared with only 14.1% for mainstream joint-venture brands. In May 2024, domestic brands captured 75% of the passenger car market share, while Japanese brands’ overall market share in China has fallen to below 10%, down from 23.1% five years ago.