Nissan's Affordable Electric Vehicles Are Thriving in China, While Honda Struggles | Carscoops

      Honda sold only 2,900 electric vehicles in China in the second quarter.

      The S7 and P7 have not attracted Chinese consumers as much as Honda hoped.

      Just a month after the S7's launch, its starting price was reduced by around $8,400.

      The absence of hands-free autonomous driving is viewed as a significant drawback.

      Traditional automakers are discovering that captivating Chinese consumers involves more than merely exporting global models. To maintain market share, they must create electric vehicles specifically designed for local preferences and standards. Nissan has succeeded with its Dongfeng-based N7 sedan, while Honda has pursued a similar strategy with its locally produced Ye series, but the outcomes have been less favorable.

      Recent sales figures indicate that Honda's sales in China dropped by 2 percent from April to June, reaching only 2,900 vehicles. This comes despite the recent introduction of the electric S7 and P7 in the local market, suggesting that the Japanese manufacturer misjudged the appeal of both models.

      Honda's challenges began with its pricing strategy. When the S7 launched in China, it was priced at 259,900 yuan, or about $36,300. While this price would be considered competitive in many markets, it did not resonate in China. Less than a month post-launch, the S7’s price was cut by 60,000 yuan (approximately $8,400).

      Price is not the only challenge. A report from Nikkei Asia indicates that the performance and features available are somewhat lacking. While both the S7 and P7 are fitted with the Honda Sensing 360+ driver-assistance system, neither model offers any form of hands-free driving, which is becoming more prevalent in China's new car market.

      Despite the setbacks, Honda is not giving up. The company has announced a partnership with the local firm Momenta to develop more advanced driving-assistance technologies. The EVs designed for the Chinese market will also incorporate advanced artificial intelligence features from DeepSeek, enabling owners to engage in detailed conversations with the built-in AI.

      Significant changes to the mechanics are also in the works. Honda intends to start using cheaper lithium-iron phosphate (LFP) batteries for its Chinese models, which will help reduce costs.

      While Honda faces challenges in China, Nissan is thriving. The all-electric N7, launched earlier this year at a starting price of just 119,900 yuan ($16,800), received 17,000 orders in its first month and maintains strong demand, with 10,148 units delivered in August. In contrast, none of Honda's EVs have exceeded 10,000 sales in any given month.