According to media reports, recently, sources said that Honda Motor Company plans to spend $11 billion to produce cars in northern Toronto, Canada, to create a "comprehensive electric vehicle value chain" that integrates electric vehicle production, battery manufacturing and other all-electric and fuel cell vehicle-related facilities.
It is reported that the Canadian government has also expressed a commitment to financial support for this project. However, in stark contrast, the performance of Japanese cars such as Honda in the Chinese market has become increasingly bleak. According to relevant data, the retail share of Japanese cars in the Chinese market has fallen from more than 20% three years ago to 14.4% currently, and it was still able to maintain a 17% share at the end of last year.
In just a few years, the market share of Japanese cars has experienced such a sharp decline, why are Japanese cars cold in the Chinese market? What are the reasons behind this?
Some analysts say that on the one hand, in the wave of new energy vehicles, Japanese cars are slow and faltering. So far, Japanese brands such as Toyota and Honda have not fully embraced the new energy pure electric drive mode, which is incompatible with the green transformation trend of the global automotive market. China's auto market is at the forefront of this transformation, and the demand for new energy vehicles is increasing.
On the other hand, Japanese cars are also facing strong challenges from domestically produced cars in the Chinese market. In February this year, the sales of domestic cars such as Huawei Wenjie and Li soared, while Honda's two major brands, GAC and Dongfeng, saw declines ranging from 30% to 40% respectively. GAC Toyota fell by more than 35% year-on-year in February. The rise of domestic automobiles has not only squeezed the market share of Japanese cars, but also highlighted the backwardness and shortcomings of Japanese cars in the field of new energy vehicles.
In the face of such a severe market situation, Honda Motor Company's investment plan in Toronto North is undoubtedly an important step for Honda Motor Company to try to seize the opportunity in the global new energy vehicle market. However, in order to regain its former glory in the Chinese market, Japanese automakers need to accelerate the development and promotion of new energy vehicles to catch up with the green revolution of the global automotive industry.