Honda’s July sales drop below 50,000 units and it marks the fifth consecutive year of declining sales in the Chinese market.
On August 7, Honda China released its terminal auto sales data for the month of July.
In July, Honda China sold 44,817 vehicles, marking a 14.75% year-on-year decline and a 14.9% drop from June’s 58,468 units. From January to July 2025, cumulative sales reached 359,969 units, down 23.16% compared to the same period last year.
Notably, this marks the fifth consecutive year of declining sales for Honda in the Chinese market. Data shows that Honda’s peak annual sales in China reached 1.627 million units in 2020, but the brand has been on a downward trend ever since.
Sales figures for the following years were: 2021: 1.5615 million; 2022: 1.3731 million; 2023: 1.2342 million; 2024: 852,300 units—a steep 30.94% year-on-year decline, marking the first time Honda’s annual sales dropped below the one-million mark in China.
Looking at individual models, former bestsellers like the Honda CR-V sold 9,283 units, while the Breeze sold 7,917 units—both showing signs of fatigue compared to their peak performance.
Behind the sales slump lies a lagging electrification strategy and mounting pressure from domestic brands.
For instance, two pure electric models that Honda had high hopes for in 2025 underperformed in the NEV market. The Dongfeng Honda S7 recorded monthly sales of fewer than 100 units after launch, and GAC Honda P7 also saw dismal sales. According to market feedback, these new models—priced in the ¥250,000–¥300,000 ($35,000–$42,000) range—fail to offer a competitive edge in terms of range or smart features.
More critically, the proportion of new energy vehicles (NEVs) in Honda’s overall sales remains low. In comparison, China’s NEV penetration rate reached 44.3% in the first half of 2025.
A cross-brand comparison reveals the extent of the gap. In July alone: BYD sold over 200,000 vehicles; Geely reached 204,900; Chery delivered 181,000 — all several times Honda’s volume. Meanwhile, emerging players are closing in fast: XPeng delivered 30,500 units and Li Auto delivered 26,200 units in July.
In the face of continuous setbacks in the Chinese auto market, Honda is now accelerating its product update cycle. In June, the brand launched an updated ZR-V, featuring enhanced paintwork and a real-time all-wheel-drive system. In July, Honda released a new HR-V hybrid coupe-style model, equipped with the e:HEV hybrid system, boasting fuel efficiency as low as 4.2L/100km.
On the strategic front, Honda has previously announced an aggressive electrification roadmap: By 2025, over 50% of Honda China’s sales will be electrified. From 2027 onward, no new internal combustion engine models will be launched. By 2030, Honda plans to introduce more than 10 fully electric models. By 2035, Honda aims for 100% of its China sales to come from pure electric vehicles.
In China’s rapidly electrifying auto market, the window of opportunity for Honda is rapidly narrowing.
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