Dongfeng Honda, the Chinese joint venture between Honda and Dongfeng Motor, sold 17,932 vehicles in September, a 19% increase from August, according to the company's monthly sales report released on October 1 and reported by Sina Auto.
The CR-V, the brand's best-selling model, accounted for the bulk of the volume with 11,851 units sold, up 9% from the previous month. The smaller HR-V contributed 2,952 units, a sharp 72% month-on-month jump, the data showed.
The figures mark a modest recovery for the joint venture, which has faced intense competition in China's crowded SUV segment, where domestic brands have been aggressively cutting prices and rolling out electrified models.
Joint venture pressure
Dongfeng Honda, like other foreign-brand joint ventures in China, has struggled to maintain sales momentum as local automakers such as BYD, Geely and Changan gain share with battery-electric (BEV) and plug-in hybrid (PHEV) offerings. The CR-V remains a stalwart in the compact SUV class, but the brand's lineup is still heavily weighted toward internal combustion and hybrid powertrains.
The September uptick follows a broader trend of month-on-month improvement across the industry as automakers push year-end incentives. Dongfeng Honda did not disclose year-to-date figures or compare September sales with the same month last year.
Honda has been investing in electrification in China, including launching the e:N series of BEVs, but those models have yet to make a significant dent in sales volumes dominated by the CR-V and HR-V nameplates.
Outlook
The company's ability to sustain the growth will depend on how quickly it can introduce competitive electric models in a market where BEV and PHEV sales now account for more than half of all new passenger vehicles. Dongfeng Honda's next major product push is expected to include more electrified variants of its core SUVs.
