The world’s largest auto market proves a difficult country for the Japanese automakers and Honda supports the idea after it reported that sales in October dropped for the fourth straight month.
This year seemed auspicious for the Asian carmakers as the rise in anti-Japanese sentiment from Chinese buyers eased following last year’s political clash. Nevertheless, in Honda’s case the recovery wasn’t long lasting and the figures reported for last month have prompted the company to trim down its full-year delivery prediction to around 800,000 units from the previous 900,000 tally. While China’s overall growth eased to 7% last month, Honda’s sales during the period dropped around 6%. The overall market cooldown has been triggered by a slowing economy, according to the head of China’s automobile association.
The ongoing political tensions between Beijing and Tokyo have caused Japanese auto brands to continuously lose market share in China to US and European carmakers during the last six years. Honda managed to deliver a total of 573,154 vehicles in China during the first ten months of the year, a modest growth of just 0.1% over the same period in 2013. The company and its two Chinese joint ventures sold 70,802 units in the country last month – a drop of 5.8% that followed a steeper fall of 23.1% in September.