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Profits plummeted by 82%, Honda's new cars could not be sold, and domestic cars were sprayed angrily and only leeks were cut

Profits plummeted by 82%, Honda's new cars could not be sold, and domestic cars were sprayed angrily and only leeks were cut

Maintenance of the car

2024-06-29 15:06Creator in the automotive field

At the press conference of the pure electric new car hunting, a leader of Dongfeng Honda was furious on the spot, angrily spraying domestic new energy to rush to put the assembled car on the market, and pass on the hidden dangers to users to harvest leeks. This phrase quickly caused fermentation, some agreed, and some jumped up to say that Dongben does not pay attention to the rules, so why did Dongben output violent arguments at this time, and what is the reason behind it?

Profits plummeted by 82%, Honda's new cars could not be sold, and domestic cars were sprayed angrily and only leeks were cut

Dongben's financial situation: profits plummeted, transformation anxiety

According to the data released by Dongfeng Group Co., Ltd., in the first quarter of 2024, Dongfeng Honda's sales revenue will be about 1,816.39 billion yen, a year-on-year increase of 2.17%. However, the strange thing is that under the premise of sales growth, it is a sharp decline in profits. During the same period, Dongfeng Honda's profit was only 27.985 billion yen, a decrease of 82.28% compared to 157.914 billion yen in the first quarter of 2023. This comparison is puzzling, especially against the backdrop of a 25.6% y/y increase in sales to 136,000 units, but the sharp decline in profits is even more illogical.

Profits plummeted by 82%, Honda's new cars could not be sold, and domestic cars were sprayed angrily and only leeks were cut

Regarding this phenomenon, Pan Jianxin, executive deputy general manager of Dongfeng Honda, once said that during the transition period from fuel vehicles to new energy transformation, profit loss is inevitable. But does the electrification transition really take full responsibility? While the pains and loss of profits in the transition are understandable, the magnitude of more than 80% is truly unbelievable. Behind this, it is more a reflection of the problems existing in Dongfeng Honda's management.

can't make money, and the management will inevitably have resentment in their hearts, which may be the main reason why Dongben's leaders are mad on the spot.

Profits plummeted by 82%, Honda's new cars could not be sold, and domestic cars were sprayed angrily and only leeks were cut

Dongben's latest layout, plugging and mixing girders

Despite the dilemma of a sharp decline in profits, Dongfeng Honda has shown a positive attitude towards the transition to electrification. In July 2023, Dongfeng Honda announced a series of radical electrification goals at its 20th birthday party: the proportion of electrification will reach more than 50% by 2025, no new gasoline vehicles will be launched after 2027, and more than 10 pure electric models will be launched by 2030.

Profits plummeted by 82%, Honda's new cars could not be sold, and domestic cars were sprayed angrily and only leeks were cut

But how are these goals actually being implemented? Judging from the current sales situation, Dongfeng Honda's electrification process is not smooth. In 2023, Dongfeng Honda's combined sales of e:HEVs and e:PHEVs will be only 96,453 units, accounting for 15.7% of total sales. The cumulative sales of these three new energy models are only 17,648 units. Such sales performance undoubtedly makes Dongfeng Honda's electrification goal more distant.

Profits plummeted by 82%, Honda's new cars could not be sold, and domestic cars were sprayed angrily and only leeks were cut

In terms of competition, Dongfeng Honda is also facing severe challenges. With the rapid development of the new energy market, the competition is becoming increasingly fierce. Local new energy brands such as BYD, NIO, and Xpeng have won a large market share by virtue of technological innovation, high cost performance and perfect after-sales service system. As the global leader of new energy vehicles, Tesla's brand influence and technical strength have also had a profound impact on the domestic market. In contrast, Dongfeng Honda's pace in the transition to electrification appears to be too slow and conservative.

Profits plummeted by 82%, Honda's new cars could not be sold, and domestic cars were sprayed angrily and only leeks were cut

How is the performance of Tomoto's pure electric model?

In terms of promoting pure electric models, Dongfeng Honda has put forward a series of radical goals, but it has been slow to implement them. Taking the Lieguang e:NS2 as an example, this new car has launched a total of 4 models, and the official guide price is 189,800-209,800 yuan. However, when the price drops to 159,800-179,800 yuan after the discount, its product power is still mediocre. Designs such as the strange styling and the torsion beam in the rear suspension make it difficult to associate it with a high-quality electric vehicle. What's more, it still hasn't been able to get rid of the impression of "oil to electricity".

Profits plummeted by 82%, Honda's new cars could not be sold, and domestic cars were sprayed angrily and only leeks were cut

From the price point of view, the pricing strategy of the e:NS2 is obviously not wise enough. In the case of such fierce competition in the new energy market, it is difficult to attract the attention of consumers with a high-price strategy that is not supported by sufficient product power. In contrast, some local new energy brands have won the favor of the market with higher cost performance and more advanced technical strength.

Profits plummeted by 82%, Honda's new cars could not be sold, and domestic cars were sprayed angrily and only leeks were cut

In terms of competitiveness, Dongfeng Honda's electrified models clearly have a long way to go. Whether it is from the perspective of brand influence, product technical strength or after-sales service system, Dongfeng Honda needs to carry out comprehensive improvement. Especially in terms of product technology, Dongfeng Honda needs to increase investment in technology research and development in the field of new energy to improve the technical content and competitiveness of products.

Profits plummeted by 82%, Honda's new cars could not be sold, and domestic cars were sprayed angrily and only leeks were cut

As for what future sales will be, Dongfeng Honda is obviously facing a huge challenge. According to its business objectives, the company aims to achieve a sales ratio of more than 20% of new energy vehicles in 2024 while maintaining a market share of 3.0% of the company's overall market. However, looking back on 2023, the sales of Dongfeng Honda's three new energy models are only a little over 17,000 units. On this basis, it is undoubtedly a difficult task to achieve the goal of new energy vehicles accounting for more than 20% of sales.

Profits plummeted by 82%, Honda's new cars could not be sold, and domestic cars were sprayed angrily and only leeks were cut

epilogue

To sum up, Dongfeng Honda faces many challenges in the process of electrification transformation, from the sharp decline in profits in the financial situation to the unsatisfactory sales status, and then to the poor implementation of the electrification strategy, all reflect its anxiety in the transformation process, and it is no wonder that it will output violent arguments, in the future, Dongfeng Honda needs to take more active and effective measures to deal with these challenges, enhance brand influence, optimize product layout, strengthen technology research and development and improve the after-sales service system, in order to go further and more stable on the road to electrification. Ultimately, it all takes time and the test of the market.

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  • Profits plummeted by 82%, Honda's new cars could not be sold, and domestic cars were sprayed angrily and only leeks were cut
  • Profits plummeted by 82%, Honda's new cars could not be sold, and domestic cars were sprayed angrily and only leeks were cut
  • Profits plummeted by 82%, Honda's new cars could not be sold, and domestic cars were sprayed angrily and only leeks were cut
  • Profits plummeted by 82%, Honda's new cars could not be sold, and domestic cars were sprayed angrily and only leeks were cut
  • Profits plummeted by 82%, Honda's new cars could not be sold, and domestic cars were sprayed angrily and only leeks were cut
  • Profits plummeted by 82%, Honda's new cars could not be sold, and domestic cars were sprayed angrily and only leeks were cut
  • Profits plummeted by 82%, Honda's new cars could not be sold, and domestic cars were sprayed angrily and only leeks were cut
  • Profits plummeted by 82%, Honda's new cars could not be sold, and domestic cars were sprayed angrily and only leeks were cut
  • Profits plummeted by 82%, Honda's new cars could not be sold, and domestic cars were sprayed angrily and only leeks were cut
  • Profits plummeted by 82%, Honda's new cars could not be sold, and domestic cars were sprayed angrily and only leeks were cut
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