Honda China (Part 1): Sales target of 1.3 million units in 2015

Plans to expand compact SUV and car sales, and start HV production by 2016

2014/10/03

Summary

  This report provides sales data and model strategies of Honda Motor Co., Ltd. in China and outlines recent developments on the company's creating a new research and development organization in the country. Recent developments on Honda's production operations in China will be reported in the next report on Honda China.

  Honda's performance is a reflection of (1) a one-time, sluggishness due to the company's delayed response to the shift in demand for compact cars in the Chinese passenger car market, (2) a decline in sales of the company's local strategic vehicles such as the Accord, and (3) the adverse effects of anti-Japanese demonstrations in China. In 2013, the company's performance rapidly recovered. The sales volume in China increased by about 24.4% on a year-over-year basis (y/y) to 781,000 units (factory shipment basis, exports included, imports excluded). On the other hand, the company's sales results for the period from January through July 2014 showed a little more than a 5% increase y/y. The rate of increase fell slightly.

  In addition to development support centers in Guangzhou and Wuhan, Honda established Honda Motor China Technology Co., Ltd. in Guangzhou in November 2013 to step up its research and development efforts in China.

  Honda is introducing at least 10 new models, including fully redesigned models, from 2013 to 2015 in order to reinforce its product lineup in China. Moreover, the company is planning to start local production of the Acura-brand models by 2016.

Passenger car Sales by Foreign JV in China Sales Changes of Honda by JV in China

Related Reports:

◇Honda China (Part 2):recent movements for production enhancement (Coming soon)

◇Beijing Auto Show 2014:
    (1) Honda unveils Hybrid Concept B and Acura RLX SH-AWD (May 2014)
    (2) Honda: All-new Spirior concept, Vezel and 3rd-generation Fit (May 2014)

Honda's strategy to expand in Asia by developing cars for local markets (May 2014)

Honda's China production increased to meet 2015 projections (May 2013)



Honda's sales volume in China

▽The rate of increase in Honda's sales in China declined, from the 24% recorded in 2013, to only a 5% increase for the period from January through July 2014

 Honda aims to overtake Nissan Motor Co., Ltd. in the medium-to-long term and Volkswagen AG in the long term in car sales in China. In 2013, Honda's sales volume (on factory shipment basis) increased by 24.4% y/y to 781,000 units, thanks to the fully remodeled Accord and the introduction of the new Crider and new Jade.

  On the other hand, the company's sales results for the period from January through July 2014 showed a little more than a 5% increase, with the rate of increase declining. Looking at results by joint venture (JV), we see that Dongfeng Honda Automobile Co., Ltd. reported brisk sales. In contrast, Guangqi Honda Automobile Co., Ltd. reported poor performance and Honda Automobile (China) Co., Ltd., an export-only plant, saw a downturn in exports.

 

▽Sales trends by vehicle type in first half of 2014: Sedans/hatchbacks are on downward trend while SUVs/MPVs remain firm

  The sales trends of Honda's cars in China in 2014 by vehicle type show that the sales volume of sedans and hatchbacks declined, from 262,000 units in the first half of 2013 to 255,000 units in the first half of 2014. Although the sales volume of MPVs and SUVs has remained strong, the rate of growth was not so high. Honda introduced many new models in 2034 and 2014. The introduction of new models, however, had no appreciable effect on sales expansion in the first half of 2014. When compared with the name recognition of U.S. and Europe brands in China, Honda's brands are still not widely recognized among consumers, indicating room for improvement.

 

Sales volume of Honda's JVs in China

unit
Company/Brand/Type 2009 2010 2011 2012 2013 Jan.-Jul.
2013
Jan.-Jul.
2014
▽Grand Total (Honda's JVs in China) 604,523 671,640 642,011 627,610 780,986 381,665 402,123
Three
JVs
in
China
JV Guangqi Honda 377,623 386,031 362,294 316,405 435,480 209,167 208,764
Honda Automobile (China) 28,299 25,009 24,249 29,034 24,097 13,977 9,165
Dongfeng Honda 198,601 260,600 255,468 282,171 321,409 158,521 184,194
Brand Honda 604,523 671,640 617,315 588,945 751,986 359,362 389,208
Everus - - 24,696 24,576 13,913 11,575 3,513
Ciimo - - - 14,089 15,087 10,728 9,402
Vehicle type
(upper row)
Sales volume
(lower row)
percentage in
Honda's entire
sales in China
Sedan,
Hatchback
470,895 485,824 451,604 430,808 523,791 261,575 255,006
77.9% 72.3% 70.3% 68.6% 67.1% 68.5% 63.4%
MPV 28,395 45,816 30,404 27,766 67,223 20,968 46,099
4.7% 6.8% 4.7% 4.4% 8.6% 5.5% 11.5%
SUV 105,233 140,000 160,003 169,036 189,972 99,122 101,018
17.4% 20.8% 24.9% 26.9% 24.3% 26.0% 25.1%

(Reference) Sales volume by Brand

unit
Company/Brand/Vehicle type 2009 2010 2011 2012 2013 Jan.-Jul.
2013
Jan.-Jul.
2014
▽Honda brand 604,523 671,640 617,315 588,945 751,986 359,362 389,208
JV Guangqi Honda MPV 28,395 45,816 30,404 20,900 27,277 14,401 6,753
Sedan,
Hatchback
349,228 340,215 307,194 270,929 394,290 183,191 198,498
Honda Automobile
(China)
28,299 25,009 24,249 29,034 24,097 13,977 9,165
Dongfeng Honda MPV - - - 6,866 39,946 6,567 39,346
SUV 105,233 140,000 160,003 169,036 189,972 99,122 101,018
Sedan 93,368 120,600 95,465 92,180 76,404 42,104 34,428
Vehicle
type
MPV 28,395 45,816 30,404 27,766 67,223 20,968 46,099
SUV 105,233 140,000 160,003 169,036 189,972 99,122 101,018
Sedan, Hatchback 470,895 485,824 426,908 392,143 494,791 239,272 242,091
▽Honda's JV brands in China - - 24,696 38,665 29,000 22,303 12,915
Guangqi Honda Everus Sedan - - 24,696 24,576 13,913 11,575 3,513
Dongfeng Honda Ciimo - - - 14,089 15,087 10,728 9,402

Note: Factory shipment basis, including export

 

Car Sales of Honda by type in China Car Sales ratio of Honda by type in China

 

▽Honda aims to achieve annual sales of 1.3 million units in China by 2015

  Honda's car sales in China had continued to grow until 2010. However, the company's sales dropped y/y in 2011, the first decrease since Honda started local production in 1999.

  The sales decrease was attributed to a delay in the supply of parts caused by the 2011 Great East Japan Earthquake in Japan, a decline in sales of the Accord, and the company's delayed response to the shift in demand to compact cars in the Chinese market. Subsequently, the annual sales volume in 2012 was only 599,000 units, a further drop from the 2011 level due to the adverse effects of anti-Japanese demonstrations in China.

 The sales volume in 2013 increased by 24.4% y/y to 757,000 units, a rapid increase owing to the ceasing of anti-Japanese demonstrations and the introduction of new models. Honda's sales, however, have barely increased in 2014. Presently, Honda is enhancing the marketability of its vehicles by introducing new models, to further expand sales so as to achieve sales of 1.3 million units in 2015 and over 2 million units in 2023.


  In line with these targets, Honda will introduce at least 10 new models including fully redesigned models between 2013 and 2015, launching about nine models between 2014 and 2015. Of these models, a total of five models will be exclusively designed for the Chinese market, including two models. The two models are the Crider and the Jade, which were developed in China and released in June and August 2013, respectively.

  As its long-term sales target, Guangqi Honda Automobile, a JV between Guangzhou Automobile and Honda, aims to achieve annual sales of 1 million units by 2020. Dongfeng Honda Automobile, a JV between Dongfeng Motor Corp. and Honda, also has set the same target of selling 1 million units, but aims to achieve it by 2023.

 

Honda's main automobile operations in China

Honda-affiliated subsidiaries Headquarters Honda's ownership percentages Description
Honda Motor (China)
Investment Co., Ltd.
Beijing and others 100% * Established in 2004, this company oversees Honda's operations in China.
Honda Motor China
Technology Co., Ltd.
Guangzhou 100% * Established in January 2014, this new company is engaged in R&D, purchasing planning, and production planning activities for Honda vehicles in China.
Guangzhou Honda Automobile Research & Development Co., Ltd. Guangzhou 50% * Conducts R&D to develop new models.
Guangqi Honda Automobile Co., Ltd.: Guangqi Honda Guangzhou/
Zengcheng
50% * JV between Guangzhou Automobile and Honda, which produces passenger cars. It will start production of engines in 2015 at the earliest.
Note: Guangqi Honda Automobile will continue to procure engines mainly from Dongfeng Honda Engine Co., Ltd. located within its premises, until it starts production of engines.
Dongfeng Honda Automobile Co., Ltd.: Dongfeng Honda Wuhan 50% * JV between Dongfeng Motor and Honda that produces both passenger cars and engines.
Honda Automobile (China) Co., Ltd. Guangzhou 65% * JV among the GAC group, Dongfeng Motor, and Honda. The company is the only Chinese JV dedicated to production of complete vehicles for export with a foreign ownership ratio of over 50%. The company has just transferred production of the Jazz and FIT export models to Honda's plant in Mexico, and then started producing the Accord export model.
Dongfeng Honda Engine Co., Ltd. Guangzhou 50% * JV between Dongfeng Motor and Honda, located within the Guangzhou plant of Guangqi Honda Automobile. It assembles engines for passenger cars.
Dongfeng Honda Auto Parts Co., Ltd. Huizhou 65% * Produces automotive engine and chassis parts.
Honda Auto Parts Manufacturing Co., Ltd. Huizhou 100% * Produces transmissions and other automotive core components.

 

 



Honda's sales targets for passenger cars in China: 1.3 million units in 2015

Summary of Honda's medium-to-long term sales targets in China

<Share of passenger car market>
* Aims to have an 8 to 10% share in the long term.
* Aims to overtake the Nissan Group in the medium-to-long term and the VW Group on in the long term in terms of car sales in China (announced by Honda in November 2013)
<Sales volume targets>
Note: Factory shipment basis. Imports are on a custom-cleared basis
By year  2014: 900,000 units (including about 8,000 import and sales of Acura vehicles)
 2015: 1.3 million units (including Acura models. The sales target of Honda vehicles is set at twice the 2011 result of 617,315 units)
 2020: Over 2 million units
By JV/
By
business
entity
◇Guangqi Honda  2014: Over 500,000 units
 2015: 700,000 units
 2020: 1 million units
◇Dongfeng Honda  2014: Over 350,000 units 2015: 500,000 units (CIVIC series: 200,000 units; CR-V: 200,000 units; others: 100,000 units)
 2023: 1 million units
 Note: The company is increasing the number of its dealerships. It had 356 in July 2013 and 360 as of September 2014. It plans to increase the number to 450 in 2015. In 2013, the marketing manager of Dongfeng Honda announced a plan to increase its dealerships' sales targets from the 800 units per dealer it had at that time, to 1,000 units.
◇Honda Automobile (China)  2014: Over 20,000 units
 2015: 20,000 - 30,000 units
 Note: The company has not disclosed its medium and long-term sales targets. The company, however, will not upgrade its plant, and will maintain its current production capacity of 50,000 units for the time being.
◇Import and sales of Acura-brand vehicles  2014: Over 8,000 units
 Note: Honda is stepping up its efforts to start local production of the model at Guangqi Honda's plant in 2016.

 

 



Establishes local R&D subsidiary in Guangzhou to promote localization

Honda establishes new local subsidiary for R&D in Guangzhou City

 In November 2013, Honda established a wholly owned local subsidiary called Honda Motor China Technology Co., Ltd. in an economic-technological development area in Guangzhou City, China. The new subsidiary is mainly engaged in R&D, purchasing planning, and production planning activities for Honda vehicles. In January 2014, the new subsidiary began operations. In January 2016, the new subsidiary will relocate to new facilities to be built in Guangzhou.
 Honda Motor China Technology is capitalized at CNY 400 million. It employs 366 people as of November 2013. In line with being established, it absorbed the Guangzhou branch of Honda Motor (China) Investment Co., Ltd. and took over the branch's operations. Honda Motor (China) Investment was incorporated in January 2004 in Guangzhou to oversee Honda's operations in China.
In 2012, Honda announced a plan to introduce at least 10 new models in the three years between 2013 and 2015, including fully redesigned, locally produced models. The newly established subsidiary supports not only R&D activities, parts procurement, and production planning of the locally produced models but also engages in R&D activities on imported models such as the Acura/Honda brands that will be locally marketed in China, a huge market with growing importance.

 

 Guangzhou Honda Research & Development Co., Ltd. (Guangzhou City), a JV R&D center between Guangqi Honda and Honda, has been conducting R&D to develop Honda's automobiles. The Technology Development Center (Wuhan) attached to Dongfeng Honda also plays a role in supporting the technological development of the company's vehicles in China.

 In addition, Honda Engineering China Co., Ltd. in Guangzhou City produces manufacturing equipment such as metal molds, and develops and introduces production technology.

 Honda Motorcycle R&D Co., Ltd., founded by Honda in Shanghai, is primarily engaged in R&D activities involving Honda's motorcycle business in China.

 

 



Model strategy: To further introduce compact SUVs such as the Acura; start production of HVs by 2016

▽Honda's plans for commercial models in China
Summary * In 2014, Honda began gradually installing its FUNTEC* power system technology into its vehicles sold in China, with plans to eventually install the system on all models. *Note: FUNTEC technology is a general name for Honda's combined high technologies introduced into China. It includes Honda's new-generation power system technology "Earth Dreams Technology," Honda's proprietary "Advanced Safety Technology," and "Honda's comfort technology."
  1. Honda's Advanced Safety Technology includes: frameless monocoque body structure ACE (Advanced Compatibility Engineering); CMBS (Collision Mitigation Brake System); ACC (Adaptive Cruise Control); and Lane Watch.
  2. Comfort technology includes: Man Maximum Machine Minimum; V-shaped rail-type second-row seat; Audio system with visual display that can connect with smartphones; and Honda Link which enables information to be exchanged between smartphones and Honda's proprietary cloud system.

As of July 2014, the number of new models equipped with the FUNTEC technology in China is three in total, which are the ninth-generation Accord, Crider, and Jade.
* For the time being, it plans to mainly launch compact models, including SUVs.
* Between 2013 and 2015, a total of at least 10 new models, including fully redesigned models, will be released. Between 2014 and 2015, 9 of the models are scheduled for launch according to the announcement made by Honda in November 2013.
By business or JV ◇Guangqi Honda * Plans to launch a hybrid model by 2016, or as early as 2015 (some reports say the FIT Hybrid will be the first).
◇Dongfeng Honda *Plans to introduce a total of six new Honda models equipped with the FUNTEC technology, including fully redesigned models, between 2013 and 2015.
◇Production of Acura *This is a project to start local production of the Acura-brand vehicles in 2016. The first locally produced model will be an Acura compact SUV designed on the Acura Concept SUV-X unveiled in April 2013.

 

Main new models in China: To start local production of hybrid model in 2015

▽Guangzhou Honda: JV plant between the GAC group and Honda in Guangzhou
Model Launch timing Details
Crider Jun. 2013  Compact sedan developed by Honda's engineers in Japan and China for the Chinese market. It measures 4650 mm in length, 1750 mm in width, 1505 mm in height and has a wheelbase of 2650 mm. The Crider is available in three variants. The standard selling price ranges from CNY 114,800 to CNY 134,800.
 It carries a 1.8-liter, in-line four-cylinder i-VTEC engine with a maximum output of 102kW and a maximum torque of 172Nm. It comes with either a five-speed manual transmission or a five-speed automatic transmission. The engine features Honda's FUNTEC technology. It offers fuel efficiency of 6.5-6.7 liters per 100 km in a designated test mode, according to the maker.
3rd generation Fit May 2014  The fully remodeled third-generation Fit. It is Guangqi Honda's flagship model. The third-generation Fit is equipped with a 1.5-liter DOHC i-VTEC engine featuring Honda's FUNTEC technology. The previous second-generation Fit came with a 1.3-liter or 1.5-liter engine. The 1.5-liter DOHC i-VTEC engine is paired with a new CVT.
 The standard selling price ranges from CNY 73,800 to CNY 112,800. It is positioned to compete with FAW-Volkswagen Automotive's Polo and GAC Toyota Motor's Yaris. In June 2014, Guangqi Honda announced that it intends to double the sales of the Fit.
All-new Odyssey Aug. 2014  This latest version of the fully remodeled Odyssey is only being mounted with a 2.4-liter four-cylinder engine. It is built on a new unique Odyssey platform instead of the previous Accord platform.
Vezel Oct. 2014
(order started
from Sep.)
 A new, small, urban four-door SUV designed on Honda's Concept V. The new Vezel measures 4294 mm in length, 1772 mm in width, 1605 mm in height, and has a 2610 mm wheelbase. It has been designed specifically for young Chinese consumers born in the 1980s and the 1990s. The Vezel is Guangqi Honda's fourth mainstream model, after the Accord, Fit, and Crider. The sales price is planned to be from CNY 139,800.
 The new Vezel is available in either two wheel drive or all-wheel drive (AWD). It is powered by a 1.8-liter i-VTEC engine with a maximum output of 100kW and a maximum torque of 169Nm. It comes with either a five-speed manual transmission or a CVT. The engine has an automatic start-stop system. The new Vezel offers fuel efficiency of 6.5 liters per 100 km according to the maker.
Fit Hybrid 2015
(planned)
 A hybrid version of the new Fit
Acura small-size SUV 2016
(planned)
 A high-end compact SUV which has been designed on the Acura Concept SUV-X (compact type) and geared mainly to the Chinese market.
▽Dongfeng Honda: JV plant between Dongfeng Motor and Honda in Wuhan
Model Launch Timing Details
Jade Aug. 2013  The new Jade has been designed mainly for the Chinese market, in particular for young consumers born in the 1980s. It is a MPV (5 to 6-seat) strategically designed to be sold worldwide. It comes under the C-MPV segment (European segmentation) that meets the needs of various lifestyles. Dongfeng Honda intends to introduce and expand sales of the new model worldwide.
 It is equipped with Honda's FUNTEC power system technology incorporating a new CVT.
2nd generation Spirior Nov. 2014
(planned)
 The latest version (second generation) of the fully remodeled, Spirior sporty sedan, a next-generation leading model by Dongfeng Honda. The company displayed a concept model at the Beijing International Automotive Exhibition held in April 2014 and a mass-production model at the Chengdu Motor Show in August 2014. Dongfeng Honda aims to sell at least 60,000 units of the new Spirior annually.
 It measures 4820 mm in length, 1850 mm in width, 1465 mm in height and has a wheelbase of 2775 mm. The second-generation Spirior features Honda's FUNTEC technology. It is powered by a 2.4-liter i-VTEC engine mated to an eight-speed DCT. The engine generates a maximum power of 153kW and a maximum torque of 247Nm. Dongfeng Honda plans to add a 2.0-liter engine version.
It is designed to compete with the following two vehicles:
  1. The latest, third-generation Mazda6 Atenza Atezi by FAW Car
  2. The Reiz (Mark X) by Tianjin FAW Toyota
Both of the two competing models are equipped with automatic transmissions with a manual mode.
XR-V
(tentative name)
At the end
of 2014
(planned)
 A next-generation, leading model by Dongfeng Honda. The XR-V compact SUV is built on Honda's Concept V, the same platform on which the Vezel by Guangqi Honda is built. The company also is building an AWD variant. Dongfeng Honda aims to sell at least 70,000 units of the new XR-V annually. In August 2014, an XR-V concept car (4275 mm long, 1770 mm wide, 1605 mm high, and a 2610 mm wheelbase) that comes close to a production model was unveiled. The company plans to release a mass-production model in October 2014.
 It is powered by either Honda's latest 1.5-liter or 1.8-liter engines, which are also mounted on the latest Civic. It comes with an automatic start-stop system as well as with a six-speed manual transmission, five-speed automatic transmission, or CVT. The 1.8-liter engine generates a maximum power of 104kW and a maximum torque of 174Nm. The new XR-V is equipped with a panorama roof on top.
New
Civic
2017
(planned)
 Upcoming version of the fully remodeled Civic sedan. The latest Civic Hybrid will have a two-motor hybrid power system, which is the same as the one installed on the Accord Hybrid.
 The current Civic comes with a 1.8-liter four-cylinder engine and the Civic hybrid version comes with a 1.3-liter four-cylinder engine.
▽Honda Automobile (China): JV plant among GAC group, Dongfeng Motor and Honda in Guangzhou (export-only plant)
Model Launch timing Details
Fit North American version, and Jazz (produced
from 2005 to Apr. 2014
 The company started producing and exporting the Jazz to Europe in 2005. It also started producing the North American version of the Fit, designing it for the Canadian market, in 2012. In May 2014, the company ceased production of the two models marketed in Europe and Canada, as Honda transferred their production to its plant in Mexico.
Accord
(import version)
Jun. 2014  After the production of the Accord was transferred to this export-only plant from the U.S., it began building the model for Russia and the Middle East, producing between 20,000 and 30,000 units. It used to build the Jazz for Europe and the North American version of the Fit.

 

Honda brand: Strengthens compact SUV segment and government-use MPV segment by introducing the latest Odyssey

▽Enhances the lineup of MPV models, adding two new MPV models since 2012
<Guangqi Honda> Launches latest remodeled Odyssey, aiming to expand the segment
 In August 2014, Guangqi Honda started producing the fully remodeled Odyssey MPV and launched sales of it first in Beijing. As a result, the company discontinued production of the old Odyssey. The new model is available in five variants. The standard selling price ranges from CNY 229,800 to CNY 299,800, which is CNY 60,000 to 90,000 less expensive than that of its biggest rival, Shanghai GM's Buick GL8 (CNY 289,900 to CNY 399,900).
 Upon redesigning the Odyssey, Honda right from the development stage aimed on expanding the target segment of the Odyssey MPV in China, from not only the B-class family-use passenger car style MPV segment based on the old Odyssey but also to the official, government-use MPV segment. Consequently, the company developed the new Odyssey into a model that directly competes with its biggest rival, Shanghai GM's Buick GL8, which has been exclusively targeted to the government-use vehicle segment.
 The Buick GL8, the biggest rival to the Odyssey, is larger than both the old and new Odysseys in length, width, height and wheelbase. Details of the lengths, widths, heights and wheelbases of the three models are as follows:
  【Previous Odyssey        】  4810/1802/1570/2830mm
  【New Odyssey               】  4830/1805/1695/2900mm
  【Competitor Buick GL8】  5213/1847/1750/3088mm
 The types of target customers of the old Odyssey and Buick GL8 in the Chinese MPV market in recent years are described below on a factory-shipment basis:
  ▽ Previous Odyssey
    Individual buyers: 70% or more; commercial- and government-use buyers: less than 30%
    <Model features> Relatively compact and fuel efficient. The size and design represent the pursuit of convenience in driving.
  ▽ Buick GL8
    Most customers were corporate- and government-use buyers. In recent years, individual buyers account for about 50%, and corporate/government-use buyers account for about 50%.
    <Model features> It was designed in pursuit of stability of the car itself. The large body size offers greater stability. Not fuel efficient.
<Dongfeng Honda> Added one MPV model each in 2012 and 2013
 In 2012, Dongfeng Honda launched vehicles in the MPV market, a segment in which it had not launched vehicles previously. The company started building and selling the Elysion, a large MPV, which became the company's first MPV, in July 2012. Then, in 2013, it launched its second MPV, the Jade.
▽ The Elysion is Honda's highest-end, seven-to-eight seater MPV. The model was marketed only in Japan until it was launched in China. (Sales in Japan ended in October 2013.) It comes with a 2.4-liter, four-cylinder engine, the same as that mounted on the first Spirior.
▽ The Jade is a five-to-six seater MPV that belongs to European C-MPV segment. It is strategically designed to be marketed worldwide. The model was first developed for the Chinese market and will be launched in the rest of the world later. It is mounted with a 1.8-liter, four-cylinder engine.

 

Acura brand: Preparing for start of local production at Guangqi Honda in 2016

 In July 2013, Honda and Guangzhou Automobile Group signed a Memorandum of Understanding to jointly operate the Acura brand car business in China. (Acura's Chinese name is OuGe.) Both companies are considering launching production of Acura cars at their JV plant in Guangzhou (Guangqi Honda) in 2016.
 Prior to this, Honda announced at the Auto Shanghai 2013 held in April 2013 that it would locally produce a mass-production SUV that will be based on the Acura Concept SUV-X, a compact type SUV, in three years, by 2016. The Acura Concept SUV-X is being developed for and geared to mainly the Chinese market.
 Honda started sales of imported Acura brand cars in China in September 2006. As of July 2013, a total of six sedans and SUVs such as the MDX, RDX, ILX, and RLX were being marketed. In 2013, Honda launched the Chinese version of the Acura RDX (3.0-liter engine), which is an improved version of the Acura RDX designed for the U.S. market and released in 2006. In November, Honda launched the latest, third-generation Acura MDX large SUV, which is a three-row, seven-seat vehicle, with a standard selling price of CNY 739,000 to CNY 795,000.
 In 2014, Honda is building up a sales network for Acura brand models in several provinces, including Heilongjiang, Fujian, Liaoning and Jiangxi. Under Honda's plan, the dealerships will serve as authorized sales agencies and showrooms. In May 2014, Honda opened an Acura dealership that is mainly a showroom, in Shenzhen, Guangdong Province.
 In line with these developments, Honda, in April 2014, announced that Honda Motor China Technology Co., Ltd., Honda's new subsidiary engaged in R&D activities in Guangzhou, will support and collaborate on R&D activities for also Acura models designed for the Chinese market.

 

Honda's production of HVs in China

▽ To start local production of HVs in China by end of 2016
 Honda has lagged behind Toyota and Nissan in terms of building up its production operations. In response to changes in the Chinese government's energy-saving/new energy vehicle promotion policy in recent years, Honda is steadily advancing its activities to boost its production operations to this end.
 According to media reports, Honda will first start local production of hybrid vehicles (energy-saving cars) by the end of 2016, or even in 2015 at the earliest.
▽ Introduced three green vehicle models in 2012
 In November 2011, Honda started field trials on an electric vehicle (EV) in Guangzhou City. China is the third country in which Honda conducted field tests on EVs, following trials conducted in the U.S. and Japan. The test vehicle Fit EV is built on the Fit and equipped with several of the latest technologies, including a lithium-ion battery and a gearbox/coaxial motor, which are used in Honda's FCX Clarity fuel cell vehicle. It takes less than six hours to fully charge the battery on a household outlet (220V) in China. The maximum speed is 144 km. The Fit EV can travel at least 150 km per charge. The field trials were conducted jointly with the government of Guangzhou City and Guangzhou Automobile Group.
 In 2012, Honda started importing and selling the CR-Z and Fit Hybrid via Guangqi Honda. Both models are equipped with Honda's original hybrid system, IMA (Integrated Motor Assist). The CR-Z is powered by a 1.5-liter i-VTEC engine and gets 25 km to the liter in the 10-15 mode. The Fit Hybrid comes with a 1.3-liter i-VTEC engine and the driver assistance system, Eco Assist, for improved fuel efficiency. Its fuel economy is 30 km/liter in the 10-15 mode.

<Automotive Industry Portal MarkLines>