Honda Motor (TYO:7267) and Toyota Motor (TYO:7203) reported sharp sales declines in China in April as domestic competition intensified and weaker consumer demand weighed on the market, Nikkei reported Tuesday.
Honda's China sales fell 48% from a year earlier to 22,595 vehicles, with demand slowing for core models including the Accord. Sales at its joint venture with Guangzhou Automobile Group dropped 64%, while deliveries at its venture with Dongfeng Motor Group fell 31%, according to the report.
Honda said slower model updates hurt performance as Chinese brands and rivals accelerated new vehicle launches, the report said.
Toyota's April sales in China declined 25% to 106,500 vehicles. The company said higher gasoline prices weakened demand for combustion-engine cars, while some consumers delayed purchases ahead of May Day promotions, according to the report.
Sales at FAW Toyota fell 38%, while GAC Toyota posted a 10% decline. Deliveries for Toyota's Lexus marque dropped 29%. In contrast, Toyota's EV sales in China jumped 88% to 17,700 units. For the first four months of the year, Honda's China sales fell 28%, while Toyota recorded a 10% decline, the report said.
China's overall vehicle sales dropped 20% during the period, according to the China Association of Automobile Manufacturers, amid weak domestic demand and reduced tax incentives for electric and new-energy vehicles, according to the report.
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