Japanese brands are facing sales decline pressure in 2024, especially Toyota and Honda, whose sales drops are more noticeable.

Toyota: As of July 14th, the cumulative annual sales were 691,000 units, a year-on-year decrease of 14.80%. Toyota still maintains a relatively high sales level, but its 14.80% year-on-year decline shows the intensity of market competition and potential challenges. Toyota has always been known for its reliability and fuel efficiency, with a broad user base in the Chinese market. However, with the rise of new energy vehicles and intensified market competition, Toyota has been slow to respond to the Chinese market.

Honda: Honda's sales decline is even more significant, reaching 18.33%. Among Honda's models sold in China, some were once very popular, such as the CR-V and Accord. As a result, Honda has reduced its annual production capacity for fuel vehicles from 1.49 million units to 1 million units, setting the largest production cut record among Japanese automakers. Honda officially stated that this move is to accelerate the transition to electric vehicles and optimize production capacity to achieve sustainable growth in the Chinese market.

Japanese automakers have earned a good reputation in the Chinese market with their high-quality products, once reaching a peak market share of 20%. However, with the rapid shift toward electric vehicles in China and intensified price competition from local brands, Honda's sales in June decreased by approximately 40% year-on-year. There's really no way around it now!