AutoBeta(AutoBeta.net)08/06 Report--

Honda Motor was originally a motorcycle car manufacturing company, and it only began to develop into the whole vehicle manufacturing market in 1958. After a course of more than 60 years, Honda has surpassed BMW, Chrysler and other well-known car companies to become world-class automakers.

However, it is such a well-known car company that has had an "accident" in the global auto market.

According to data, Honda's net profit from January to March 2019 was 6.77 billion yen, down 106.28% from a year earlier, while operating revenue was 2.16 trillion yuan, down 44.83% from a year earlier. Honda's revenue from April to June 2019 was 3.996 trillion yen, down 0.7% from a year earlier, while revenue was 252.4 billion yen, down 15.7% from a year earlier.

In Honda's view, a large part of the decline in revenue and profits is due to falling sales in the US market, which is below market standards, resulting in overcapacity in the US market, thus affecting market earnings. In addition, Honda also said that the rise in the exchange rate of the yen is also an important reason for the decline in earnings, which is mostly lower than that in overseas markets, affecting the company's revenue.

In response, Honda is shrinking its overseas industries. On February 19, Honda closed its Swindon plant in the UK and announced that it would reduce global production costs by 10 per cent by 2025 and reduce the industrialization of some models to save costs.

But it is worth noting that although Honda is not as expected in the global market, it has had a "warm winter" in the Chinese market.

Like the global market, the domestic market is also in the doldrums. According to data, in the first half of this year, automobile production and sales were 12.132 million and 12.323 million respectively, down 13.7% and 12.4% respectively compared with the same period last year. In such an environment, sales of well-known manufacturers such as PSA and Ford plummeted.

However, in this case, Honda has a different performance in the Chinese market. On August 5th, Honda China announced its July sales results, of which Guangzhou Auto Honda sold 55500 vehicles, up 1.7% from the same period last year, and Dongfeng Honda sold 60300 vehicles, up 17.6% from the same period last year.

Overall, Guangzhou Auto Honda and Dongfeng Honda sold 861200 vehicles from January to July this year, up 20.5% from a year earlier. Of these, Guangzhou Auto Honda sold 436100 vehicles, up 11.2% from the same period last year, while Dongfeng Honda sold 425100 vehicles from January to July, up 31.7% from the same period last year.

Honda China said that the reason for its different expression in the Chinese market is that its classic models are very popular with consumers, such as CR-V, Civic, Accord, XR-V and other model terminals are more than 10, 000, of which CR-V and Civic are more than 20, 000.

Indeed, Honda in China for many years of development, indeed accumulated a lot of experience and popularity, by virtue of its performance-to-price ratio, accumulated a lot of reputation.

However, Honda is not intact. In early 2018, Honda was exposed to an increase in 1.5T CR-V oil, which forced Honda to stop selling its models, and recently was complained by a number of consumers because of Accord stall.

According to understanding, recently, there are more than ten generations of Accord owners around the world reflected in the normal process of high-speed driving, engine stall, fault alarm, and so on, there is no response to stepping on the throttle, can only rely on inertia speed taxiing parking. At present, some Accord owners have reached an agreement to return or change cars with Honda 4S stores, but there are still many car owner problems that have not been solved.

From this point of view, although Honda is a well-known car company in the world, and the increase in sales also proves that it is indeed recognized by many consumers, even so, there are still loopholes in the market and products. If we do not start to solve the problem, it is likely to affect the development of Honda and hinder the development of cars in the future.

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