With detailed strategic targets for electrification, Honda China plans to sell 800,000 electric vehicles in China by 2030

[News-Oxcart Network]

Following Honda China's release of the new pure electric vehicle brand "e:N", China Oxcart learned that Honda China once again updated its electrification strategic plan. According to the content, Honda China plans to reach an annual sales plan of 800,000 electric vehicles in China by 2030, hoping to re-establish its benchmark in the new competitive market.

The data shows that in the past 2021, Honda China only sold 10,000 electric vehicles in the domestic market. The domestic independent brand BYD, the sales of new energy vehicles (including pure electric vehicles and other hybrid models) have exceeded 590,000, and the transformation of traditional car companies into typical Volkswagen has also sold more than 70,000 electric vehicles in the Chinese market. In contrast, Honda China's electrification process is not rapid.

Katsushi Inoue, chief operating officer of Honda's Regional Business in China, said that if it does not remain competitive in the rapidly growing Chinese market in the field of electrification, Honda will be lagging behind globally. He pointed out that Honda will change again in all areas, and the next five years are the key to success or failure.

Previously, Honda China aims to sell 2 million vehicles in China by 2030, a 30% increase over 2021. Among them, electric vehicles will account for 40% of total sales, while the other 60% will be hybrid vehicles. This means that after 2030, all new models launched by Honda China in China are new energy vehicles (pure electric vehicles and other hybrid models) and no new fuel vehicles will be launched.

In terms of production, Two of Honda China's joint ventures, Dongfeng Honda and Guangqi Honda, will also build a new electric vehicle plant, both of which will be put into operation in 2024 with a planned annual production capacity of 240,000 units. The combined annual production capacity of 480,000 units at the two plants still cannot meet Honda's target of 800,000 units per year in China, so production capacity expansion is also imminent.

In addition, in terms of battery supply, Honda China has cooperated with power battery giant CATL, the former also holds a small stake in the latter. "We have received a guaranteed battery supply from the CATL era," Said Katsushi Inoue, "and the supply will remain stable for the next five years." ”

In 2021, affected by the global chip shortage, Honda China's annual sales declined, and Katsushi Inoue said that the chip shortage will continue until the first half of 2022. Faced with the competitive pressure brought about by the transformation and upgrading of electrification, Honda China also needs to make urgent efforts to be invincible in the fiercely competitive Chinese market.