Under the circumstances of being attacked from both sides, Honda will gradually be like Toyota and Volkswagen in the future. It is urgent to come up with good strategies to deal with the crisis.

　　Author | Cao Jiadong

　　Editor-in-chief | Luo Chao

　　Editor | Zhu Jinbin

　　At the moment when the joint venture brand is disturbed by the intense market turbulence, everyone believes that the evolution direction of the Chinese car market in 2023 will move towards the trend of Chinese brand control.

　　BYD has defeated the entire defense line of the joint venture market of less than 250000 by its own efforts, and the new generation of Chinese auto companies such as "Weixiaoli" have also stirred up the logic of the existing auto market to the ground... It can be said that there are stabs to cut the old style in these countless industrial developments.

　　"In the future, China's auto market will usher in an extraordinary moment of transformation". The proud Chinese auto companies are so firm. On the other side, the access to traditional joint ventures always seems so narrow and bumpy.

　　In the past two years, the masses who have realized this very early have indeed started the frenzy of electric transformation under the leadership of Herbert Dis. From ID. series to North and South Volkswagen, the giant that has worked in China for more than 20 years wants to keep up with the pace of changes in China's car market. However, the train of the era is no longer under the control of power.

　　When the whole staff of the ID. series fell into a sales crisis and the tepid performance of the fuel car business made Volkswagen no longer cover the sky with only one hand in China. At the same time, from Ford, GM, Hyundai - Kia, to Toyota and Honda, we all read too much anxiety and fear.

　　In particular, those Japanese joint-venture car companies with cautious nature, seeing that hybrid technology is difficult to become mainstream in China's new energy market, are struggling to find a balance between the desire for electric transformation and the maintenance of existing base users.

　　Before that, North-South Toyota made a sharp price reduction on its bZ4X in the open and in the dark, and its purpose was already so obvious. So, for Honda, another Japanese giant, how to balance sales volume and profit should be a key issue to consider in the beginning of the year.

　　Planning cannot keep up with changes

　　China's auto market in 2022 has experienced too much. The industry crisis caused by the core shortage incident has not been eliminated. The whole industry has emerged and followed closely due to the closure of control in Shanghai. Everything seems so cruel.

　　Whether due to the misjudgment of the market in the early stage or the severe impact of the epidemic sequelae, Honda's sales performance in the Chinese market has experienced a sudden decline in the entire joint venture camp.

　　Earlier, according to data released by Honda (China), the cumulative sales volume last year fell 12.1% year-on-year compared with 2021. Even from the perspective of the joint ventures of GAC Honda and Dongfeng Honda, it is difficult to say that the feedback given by the Chinese auto market in 2022 is friendly.

　　Looking at the entire joint venture market, we do not deny that it is a problem for every car company at this stage to deeply lament the reality and cast doubts on the future. The major changes in consumption trends, the acceleration of industrial transformation, the unlimited involvement of Chinese auto companies, and various changes around are also the sources of this result. In such a big environment, there must be no other way for joint venture brands including Honda to rebuild the moat.

　　Last year, in a series of exposures, the outside world can clearly see that in order to keep pace with Toyota in brand building, Honda is working hard to climb to a higher dimension.

　　In terms of technology, its joint venture companies simultaneously introduced the technology trumps launched by Honda brand in the world, including the fourth generation i-MMD hybrid technology, Honda SENSING 360 safety super-sensing system, and Honda Architecture new architecture;

　　At the product end, Honda is trying its best to convey the refined side to the outside world regardless of field, from the new Pizzy/XR-V, CR-V/Haoying, to the launch of the new generation model and ZR-V Zhizai;

　　At the cultural level, it is obvious that Honda's determination to create more profound interaction in China's auto market is related only to its willingness to co-create reality shows with Mango TV, launch the "Dream with Club" community ecological platform, and save energy.

　　In the new environment, Honda can continue to enhance its brand power and deepen the re-education of consumers' awareness of its own brand. As mentioned above, from the launch of the e: N pure electric series last year to the repeated carding and comprehensive renovation of the product line in China, Honda is eager to start its own construction from the perspective of value before the complete completion of the electric transformation of the Chinese car market.

　　But on second thought, if we take into account the next preset evolution direction of China's auto market, we should always be alert to the crux behind Honda, a first-line auto company, after experiencing such turbulence as 2022.

　　They need to understand that when the Chinese auto market no longer evolves due to external forces, when the Chinese auto market no longer provides a comfortable development greenhouse for joint-venture auto companies, and after controlling the market for more than 20 years, it is time to break away from ourselves and adapt to the rhythm of "moving according to the situation".

　　Soon, the latest generation of Accord and the sister car HR-V of ZR-V launched by Honda in the Chinese market will appear in succession before the Shanghai Auto Show. In the face of the increasingly aggressive Chinese auto companies, under its planning, the arrival of new models will also become the executor of existing strategies. Whether it can fill the lost share of North and South Volkswagen and maintain its advantages on the existing basis will largely depend on Honda's control over the future.

　　Figure | Dongfeng Honda's new SUV model - HR-V

　　From secret war to seesaw war

　　In what direction will the car market develop in 2023?

　　We can't easily say that the background of the new era will put aside all the foreign colors. The traditional giants including Volkswagen and Toyota Honda will gradually be driven from the core area to the edge of the Chinese market, as the dangerous words are publicized by the outside world. But it will not, as most of the joint-venture car companies in the administration think, face the pressure of transformation and the market will continue to support as always.

　　With the market penetration rate of new energy vehicles soaring to 27.4% and the market share of Chinese brands exceeding 50% for several months in succession, it is not only difficult to say that all existing plans can be achieved. After a long time of brand tug-of-war with Chinese auto companies, and after the price battle, should the internal system weakness be eliminated in the rapid market downturn?

　　It is said that Honda will try to maximize profits on the basis of maintaining sales. It is better to launch more segmented models, vigorously promote e: HEV/e: PHEV, or start to implement the new organization and operation system on April 1 this year. The implementation of all plans at this stage is to help Honda fall into such a plan.

　　"Through the system change, the functions of Honda China's production strategic planning and production technology planning will be integrated, further laying a solid foundation for the future development of the electrification industry."

　　For Honda in 2023, regardless of this series of operations, what is its deterrent force. From the outside world, Honda's "swing" has been full of uncertainty about the choice of sales volume and profit.

　　After all, the recent market situation in 2022 is there. The golden age of joint venture brands has gone. This means that as the market further inclines to Chinese brands, and consumers no longer only choose brands as "heroes", it is no longer easy for overseas car companies such as Honda to defend themselves. As a result, it is very difficult to pay attention to profit or force brand upgrading.

　　However, when North and South Toyota failed to resist the temptation of "price war" in the second half of last year, it would be a little unrealistic for everyone to believe that the joint venture brand can still maintain a high profile in the process of the intensified auto market.

　　In addition, the entire Japanese camp has little to do in the current pure electric vehicle market, and the new cars it promotes cannot arouse the interest of young Chinese consumers and other objective factors. Honda's optimism and confidence is not an attitude that everyone envies about the market trend after 2023. In contrast, Honda should put down its stature as much as possible and focus its attention on the powerful Chinese auto companies such as BYD and Geely.

　　In the past, there was a gap between Chinese auto companies and mainstream joint-venture auto companies that was difficult to overcome, namely, brand value. For a long time, the brand aura and belief have been the preconditions for the latter to stand in the market without fail.

　　Where is the car market folded?

　　At that time, Chinese auto companies seemed to have no other way to arm themselves except through the product laying of "low price and high configuration". However, times have changed. As we watched Chinese auto companies prosper because of "electricity" and speculated who they would take more market share from, the consideration of the life and death of joint venture brands was also brought out.

　　Just like in February, due to the price reduction in the new energy vehicle market, the operation of Toyota and Nissan only once again brought a friendly and sharp reminder to the joint venture camp: it would be irresponsible to keep in mind the past.

　　At this moment, Honda has absolute confidence, which is a good thing. It is also worth looking forward to using a more valuable brand image to surround the Chinese auto companies that are in the ascendant. However, it is really bad to underestimate the toughness and drive of Chinese auto companies and weaken the determination of Volkswagen, Toyota and other competitors. Seeking direction in a crisis is not only a measure of the current situation for the future, but also a final expression of being cautious.