by Honda’s Failure in the Chinese Electric Vehicle Market
Classic automakers are realizing that simply importing global models is not enough to attract Chinese buyers. To maintain market share, it is necessary to develop electric vehicles specifically adapted to local tastes and expectations. For example, Nissan succeeded in this with the N7 sedan, developed jointly with Dongfeng, while Honda attempted to replicate this approach with the Ye series, but the results were disappointing.
Pricing Policy and Technological Shortcomings
Recent sales data shows that Honda’s sales in China fell by 2% in the second quarter, to just 2,900 vehicles, despite the recent launch of the S7 and P7 electric models. It seems the Japanese brand missed the mark with both models.
Honda’s problems began with its pricing strategy. At its launch in China, the S7 cost from 259,900 yuan (about $36,300), which would be a good offer in most markets, but not in China. In less than a month, the price had to be sharply reduced.
Technologies That Do Not Meet Expectations
Price is not the only obstacle. According to reports, the performance and features of the S7 and P7 leave much to be desired. Both models are equipped with the Honda Sensing 360+ driver assistance system, but neither has a wireless driving function, which is becoming increasingly common in the Chinese new car market.
However, the Japanese brand is not giving up. In response, Honda announced a partnership with the local company Momenta to implement more advanced driver assistance technologies. Also, market-specific electric vehicles will receive expanded artificial intelligence functions from DeepSeek, allowing owners to have deep dialogues with the built-in AI.
Significant technical changes are also planned: Honda intends to use cheaper lithium-iron-phosphate (LFP) batteries for its Chinese models, which will help reduce costs.
Nissan’s Success Against the Backdrop of Honda’s Problems
While Honda struggles with difficulties, Nissan is strengthening its position. Its all-electric N7 was launched at the beginning of the year with a price starting from 119,900 yuan (about $16,800) and received 17,000 orders in just the first month. Demand remains high: in August, the company delivered 10,148 units. For comparison, none of Honda’s electric vehicles have sold over 10,000 units in a month.
This situation highlights how important it is to consider local specifics and the competitiveness of offerings in the dynamic Chinese market. Investing in technologies and adapting products can be the key to success for international brands seeking to maintain their presence in the world’s largest electric vehicle market.
