Kill crazy! Another day of "broken bones" in the god car: less than 150,000 to buy Accord! Sales plummeted, and 1,700 people were laid off!

Securities Times E Company

2024-06-29 18:49The official account of "Company E" under the Securities Times

Following FAW Toyota's big price reduction of its main model Corolla, Guangqi Honda also followed up with a price cut.

On June 28, Guangqi Honda's official Weibo account released news that the 628 carnival car purchase festival was launched, and the Guangqi Honda Accord with a guide price of 197,800 yuan will drop by up to 50,000 yuan (including replacement subsidies), and the discount will start at 147,800 yuan.

It is reported that the event lasted from June 28 to June 30.

Behind the halving of prices is a cliff-like decline in sales growth. According to public data, Guangqi Honda sold 31,931 vehicles in May, a year-on-year decrease of 41.31%; From January to May, Guangqi Honda sold 173,580 vehicles, a year-on-year decrease of 24.30%.

Under the multiple challenges of intensified competition in the industry, lower than expected sales and overcapacity, Guangqi Honda recently launched a round of layoffs.

It is reported that 1,700 people were involved in the layoffs, accounting for 14% of the total number of employees. It is worth mentioning that Guangqi Honda has given a more generous compensation plan for layoffs, providing "N+2+1.8" compensation for laid-off employees, where "N" represents the employee's working years, "2" represents an additional two months' salary, and "1.8" is an additional bonus month.

According to multiple people familiar with the matter, this compensation package has exceeded the industry average, and even surpassed Tesla's N+3 compensation plan.

Because of this, in the process of layoffs, many old employees "competed" for layoffs and took the initiative to sign up, hoping to take this opportunity to "retire" early.

Although Guangqi Honda's layoff plan did not cause too much negative public opinion, the decline in sales was a challenge that had to be dealt with.

In fact, in a wave of price wars, Japanese cars are suffering a full setback. Once upon a time, Japanese cars were well known to consumers for their reputation as "fuel-efficient and durable", and their share of the Chinese market once remained above 25%, and at its peak, it even reached 30%.

However, with the tide of automobile electrification, the economic advantage of Japanese cars has been greatly weakened. Since 2020, the market share of Japanese cars in China has fallen off a cliff.

According to the data of the China Passenger Car Association, in the four years from 2020 to 2023, the market share of Japanese cars in China will be 24.1%, 22.6%, 20.0%, and 17.0%, respectively. Heading into 2024, the decline continues. According to the data, in May this year, the retail share of Japanese brands has dropped to 14.8%, a year-on-year decrease of 3.2 percentage points.

Cui Dongshu, secretary general of the passenger association, said that the decline in Japanese car sales is related to the development trend of the automotive industry, and the new energy vehicles of Japanese car companies are in a weak position, resulting in a decline in their market share.

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