Honda and Toyota Hit by Sharp China Sales Slump
Honda and Toyota saw sharp declines in their Chinese sales in April as local electric vehicle makers tighten their grip on the market. The Japanese carmakers are reviewing their strategies.
According to Nikkei Asia, Honda's and Toyota's April sales in China fell sharply year over year. Honda's sales were down 38% and Toyota's 23% as Chinese electric vehicle makers BYD, Geely, and Xiaomi tighten their hold on the market.
Price wars and a rapidly expanding electric vehicle lineup are squeezing the Japanese groups, which still depend heavily on traditional powertrains. The companies said they have announced new plans to localise hybrid models for the Chinese market and to partner more closely with Chinese tech firms.
Analysts said the global margin pressure on Honda and Toyota could weigh on their profit outlook in coming quarters. Shares of both groups ended Tokyo trading flat as investors focused on the structural reform plans expected by year end.
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