Honda China Sales Slide for Fifth Straight Year, Halved from Peak by 2025

Honda's sales in China continue to decline, with total retail sales for 2025 reaching only 645,345 units—a 24.28% year-over-year drop—marking the fifth consecutive year of decline. Compared to its historical peak of 1.627 million units in 2020, Honda’s sales have shrunk by nearly one million vehicles. In December 2025 alone, sales totaled just 66,765 units, significantly lower than the 111,870 units sold in the same month the previous year. Amid challenges such as sluggish progress in electrification and insufficient competitiveness of its new energy vehicles, Honda has steadily lost market share in China to domestic brands. In July 2024, Honda announced the closure of two plants in Guangzhou and Wuhan, reducing its annual internal combustion engine vehicle production capacity from 1.49 million units to 1 million units—the largest production cut ever by a Japanese automaker in China. Recently, due to chip shortages and production line retooling, Honda implemented short-term adjustments to its production schedule for early 2026 but stated these changes would not affect its full-year delivery targets.