- The S7 and P7 have failed to appeal to Chinese customers like Honda would have hoped.
- Within a month of the S7’s market launch, its starting price was slashed by roughly $8,400.
- The lack of hands-free autonomous driving is considered to be a notable disadvantage.
Legacy carmakers are learning that winning over Chinese buyers requires more than simply shipping in global models. To hold onto market share, they need to design electric vehicles tailored specifically for local tastes and expectations. Nissan has managed this with its Dongfeng-based N7 sedan, while Honda has attempted a similar approach with its locally developed Ye series. The results so far have been less encouraging.
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Recent sales data from the country reveal that Honda’s sales in China fell 2 percent during the April-June quarter to a mere 2,900 vehicles. This comes despite the electric S7 and P7 recently landing in the local market. It would appear that the Japanese brand missed the mark with both of them.
Read: Honda Wants To Crack China’s EV Market With New Ye P7 Dual-Motor Crossover
Honda’s issues started with its pricing strategy. When launched in China, the S7 started at 259,900 yuan, or roughly $36,300. In most markets, that would be a very good deal. That is not the case in China. Less than a month after the S7’s launch, its price was slashed by 60,000 yuan (around $8,400).
Technology Falling Short
Pricing isn’t the only hurdle. A report from Nikkei Asia snuggests that the performance and features on offer leave a little to be desired. Both the S7 and P7 are equipped with the Honda Sensing 360+ driver-assistance system, but neither includes any form of hands-free driving, which is becoming increasingly common in the People’s Republic new car market.
The Japanese brand isn’t throwing in the towel just yet, though. As a response, it announced a partnership with local firm Momenta to introduce more advanced driving-assistance technologies. Its market-specific EVs are also set to receive advanced artificial intelligence features from DeepSeek, meaning owners will be able to have in-depth conversations with the in-built AI.
Significant mechanical changes are also underway. Honda plans to start using cheaper lithium-iron phosphate (LFP) batteries for its Chinese models, something that will enable it to lower costs.
Honda Suffers, but Nissan Thrives
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While Honda is struggling in China, Nissan is gaining strength. Its all-electric N7 was launched earlier this year priced from just 119,900 yuan ($16,800), and it secured 17,000 orders in the first month alone. Demand for it remains strong, and in August, the company delivered 10,148 examples. By comparison, none of Honda’s EVs have sold more than 10,000 units in any single month.
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