The whole industry was transformed into electric vehicles, but Honda insisted that the existing demand for electric vehicles was “abnormal”
Is it hiding your ears, or pretending not to wake up?
When world-famous automobile companies such as Jaguar, mini and Chrysler chose to transform into pure electric brands, Honda, Japan’s second-largest carmaker, chose to be indifferent. They were not interested in manufacturing electric vehicles, and even market research was “forced”.
Honda Motor has entered the stall of the era of electrification in the global automobile industry, and continues to issue untimely questions: how much real demand is there for electric vehicles.
The Japanese carmaker is expected to launch two electric vehicles to the U.S. market in 2024 as part of their joint development agreement with general motors: General Motors provides batteries. In order to comply with industry trends and changes in government policies, Honda has accelerated the electrification plan of its product line, but is still cautious about large-scale mass production.
Dave Gardner, executive vice president of Honda’s U.S. subsidiary, said at a briefing: “we have told dealers that initially this will be a very regional sales behavior. The attitude of consumers is not commensurate with the automakers\’ efforts to bring electric vehicles to the market.”
Honda’s cautious assessment was driven by the transformation of pure electric vehicles of many competitors. An executive of Ford Motor Company said that the share of electric vehicles in the U.S. market could increase to 10% this year.
Globally, Honda’s goal is to phase out gasoline powered vehicles by 2040, which is part of the commitment of the new CEO mibe Toshihiro. Large peers such as general motors and Volkswagen have already published similar plans.
Gardner said that the demand of American buyers for electric vehicles has not expanded. Stricter fuel economy standards have promoted the development of electric vehicles, and Tesla has always been the main beneficiary.
Honda’s poor performance in electric vehicles in the United States can be traced back to the late 1990s, when it launched a car called EV plus. Subsequently, a pure electric fit was provided in 2013, and recently a pure electric clarity car was provided from 2017 to 2020. But few consumers are willing to pay for it.
Last year, Honda’s terminal vehicle sales in China totaled 1561540 units, down 4% year-on-year. Honda explained that the supply of chips and parts was tight.
In the Chinese market, Honda’s sales of pure electric vehicles are extremely bleak. The hasty “oil to electricity” model has not been recognized by Chinese consumers. In addition, the new forces of car making are fierce. Honda has been obviously acclimatized at the beginning of the electric vehicle era.
According to public figures, the penetration rate of Shanxi Guoxin Energy Corporation Limited(600617) vehicles reached 22.6% in mid December 2021, exceeding 20% for two consecutive months. According to the data of e-Car, the share of new energy vehicles in non restricted cities reached 67% in the first 11 months of 2021. In the past year, more and more users took the initiative to choose new energy vehicles because of product power rather than right of way.
Shen Hui, founder and CEO of Weima automobile, predicts that the Shanxi Guoxin Energy Corporation Limited(600617) vehicle penetration rate is expected to reach 25% – 27% this year and more than 50% in 2025. The market will gradually change from the current dumbbell shape to spindle shape, and 150000 to 250000 mainstream markets will achieve explosive growth.
At the “2021 Sequoia digital technology global leaders summit”, Wang Chuanfu, founder of Byd Company Limited(002594) , said that medium Shanxi Guoxin Energy Corporation Limited(600617) vehicles at the same price or level have surpassed traditional fuel vehicles in terms of performance, intelligence and use cost.
According to the figures of the national passenger car market information joint conference, the wholesale volume of Shanxi Guoxin Energy Corporation Limited(600617) passenger cars in 2021 was 3.312 million, a year-on-year increase of 181%. In June 2021, the passenger Federation predicted that the sales volume of new energy passenger vehicles in that year would be about 2.4 million units. The actual sales volume is close to 1.4 times the predicted value.
However, it is noteworthy that in any segment of the electric vehicle market, Honda does not have a model that can be sold in the Chinese market.
