Honda announced on June 5 that its retail vehicle sales in China totaled 28,279 units in May 2026, down 48.7% year-on-year and 25.2% from April. For the first five months of 2026, Honda’s cumulative retail sales in China reached 173,344 units, representing a year-on-year decline of 32.5%. For a company that long ranked among the leading joint-venture automakers in China, the figures stand in sharp contrast to its peak years. Honda China delivery in May 2026 In 2020, Honda sold 1.627 million vehicles in China. Models including the Accord, CR-V and Civic consistently recorded monthly sales exceeding 20,000 units. However, as the market shifts toward electrification, Honda’s competitive position in China has weakened significantly. According to data from the China Passenger Car Association (CPCA), NEVs accounted for 63% of retail sales in China in May, while sales of internal-combustion-engine vehicles fell about 45% year-on-year. As the market rapidly pivots toward electrification, Honda’s heavy reliance on conventional gasoline-powered products has become an increasing challenge. Sales of Honda’s core combustion-engine models have declined noticeably. Data showed that the CR-V sold 8,042 units in April, while Accord and Civic sales fell to approximately 2,593 units and 1,400 units, respectively. The Fit city car has largely faded from the mainstream market. Honda EV S7 Honda’s performance in the new-energy vehicle segment has been even more concerning. Monthly sales of the all-electric S7 and P7 remained below 500 units, while the e:NP and e:NS series dropped to fewer than 100 units per month. In contrast, fellow Japanese automakers Toyota and Nissan have begun seeking growth through localized product development. GAC Toyota’s bZ3X recorded sales of 10,027 units in April, while Dongfeng Nissan’s N7 became one of the few joint-venture EVs in recent years to surpass 10,000 monthly sales. GAC Toyota’s bZ3X The sales pressure has also been reflected in Honda’s financial results. For fiscal year 2025, which ended in March 2026, Honda reported revenue of 21.8 trillion yen ($137.0 billion), up 0.5% year-on-year. However, the company posted a net loss of 423.9 billion yen ($2.66 billion), marking Honda’s first annual net loss since listing in 1957. Facing these realities, Honda has begun reassessing its electrification roadmap. Honda President Toshihiro Mibe previously stated that the company remains committed to electric vehicles, but acknowledged that its earlier goal of completely phasing out gasoline-powered vehicles by 2040 may not be realistic.