In 2024, Honda experienced a significant setback.

Honda China's sales report revealed that vehicle sales in China totaled 852,269 units for the year, marking a decline of 30.94% compared to 2023. Specifically, December 2024 sales amounted to 111,870 units, a drop of 32.52% from the same month in 2023.

As anticipated in November, Honda failed to match its sales performance from the previous year. Reviewing these figures, it's impossible not to reflect on Honda's golden era.

Honda's peak sales year in China was 2020, with approximately 1.63 million vehicles sold.

Both SUVs and sedans were best-sellers during that time.

The Accord stands out as a trailblazer in premium pricing strategies within the Chinese automotive market.

In the hearts of many Chinese, the Fit holds legendary status as Honda's compact and parking-friendly vehicle. With over 8 million owners worldwide, over 1.3 million of them reside in the Chinese market alone.

Given these past achievements, it's clear that true heroes don't dwell on past glories.

Honda China's sales peaked at 1.627 million units in 2020 but have since declined for four consecutive years. From 2021 to 2024, sales figures were 1.5615 million, 1.3731 million, 1.2342 million, and 0.853 million units, respectively, representing year-on-year declines of 4.0%, 12.07%, 10.12%, and 30.94%.

Yet, the Chinese market has evolved, while Japanese cars have largely remained unchanged.

Amidst their once-stellar sales and accolades, Japanese cars enjoyed the admiration of Chinese consumers and the abundance of the Chinese market. However, they neglected to adapt to the evolving needs of Chinese users.

Admittedly, Japanese cars previously thrived due to their "three golden signs": reliability, affordability, and marketability. However, these attributes have started to wane since the advent of the new energy era.

In response, Honda has adopted a more aggressive stance. Nevertheless, amidst widespread pessimism about the decline of joint ventures, Honda's resistance appears feeble.

Honda officially announced plans to launch 10 pure electric vehicle models in the Chinese market by 2027 and achieve 100% electrification by 2035.

However, given the current lineup of models, success seems elusive. For instance, Honda's "Ye," Honda Lingxi L, and Honda e:NP/S1 suggest that achieving 100% electrification by 2035 may be an unrealistic goal.

Conclusion

With a lack of core competitiveness in fuel vehicles and insufficient momentum in electric vehicles, Honda's future remains uncertain. Even more concerning is that Honda's situation mirrors that of other Japanese brands. So, has the fairy tale of Japanese cars come to an end?