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Honda’s EV Strategy: Using China’s Edge to Fight Rivals

Poempoonsin Charoennititada 25 พ.ค. 2569 | อ่านแล้ว 615 ครั้ง


In the previous article, I wrote about "Stop Looking at Only GDP!! Why GNI is the Real Key to Understanding Japan’s Economy Today" (https://www.tcijthai.com/news/2026/23/article/15023), which mentioned that looking at Japan's economy cannot be done by looking at GDP alone, because Japan's economy involves exporting world-class companies all over the world. Therefore, looking at Japan's economy requires looking at GNI as well.

In late March 2026, official figures were presented by Honda Motor Co., Ltd. Although Honda had a total revenue of 21.79 trillion yen, which increased by +0.5% from the previous year, it still suffered an operating loss of 414.3 billion yen. Despite Honda shifting its focus towards electric vehicles in recent times, it was still not fast enough. In the documents presented by Honda, it was found that if EV-related expenses were excluded, Honda would make an adjusted operating profit of up to 1.03 trillion yen. In Honda's corporate report, it was found that the business helping to sustain the company is the motorcycle business, which recorded a record-high profit of up to 731.9 billion yen, but Honda's automobile business slowed down significantly. In the past period, only 3.34 million vehicles were sold, down from the original target of 3.62 million vehicles.

If we turn to look at a company like Toyota from its FY2026 Financial Results report announced on May 8, 2026, it is found that Toyota had a total revenue of 50.7 trillion yen, a growth of 5.5%, and an operating profit of 3.77 trillion yen, even though it decreased by 1 trillion yen from the previous year. In the said report, there was mention of the impact of US import tariffs, which affected the overall figure by up to 1.38-1.4 trillion yen. What Toyota's report tried to highlight was the sales of electric vehicles. Although not 100% electric vehicles, they were hybrid vehicles, with sales exceeding 5 million units from both North America and China.

Previously in 2024, Honda Thailand used to offer "long-term leasing" for its first electric vehicle model, the Honda e:N1, possibly because Honda was not yet confident in its own 100% electric vehicle technology. However, in this year of 2026, HONDA has launched its first electric vehicle marketed in Thailand, the Honda e:N2 model, which is a 100% electric-driven SUV. It made its first debut at the Motor Show 2026 during the first quarter of 2026, launching at a price of 1,429,000 baht, with 3 colors to choose from: Urban Gray, Crystal Black, and a new color, Diamond Dust White. It received a total of approximately 2,500 pre-orders before the launch. Many people view this action as an all-out effort and a decision to unlock from the original strategy to come down and play in the 100% electric vehicle market, which has been quite popular among various brands recently, especially cars from China.

As for Honda Thailand's PR team, they informed the media that the vehicle comes in a sporty fastback SUV style under the concept of 'Knives Out,' emphasizing sharp lines and a Grille-less front, which is unique to electric vehicles. Inside the cabin, the emphasis is on openness under the "Sukkiri Comfort" concept, along with technology installed for the first time by Honda in Thailand: an Aroma Diffuser adjustable to 3 levels, a camera-based rearview mirror, and acoustic glass, as well as the Honda SENSING safety system that works with a wide-angle camera and a front center airbag for superior protection. With performance and technology for modern lifestyles, the Honda e:N2 is developed on the e:N Architecture F front-wheel-drive platform, delivering a maximum power of 204 horsepower (PS) and a maximum torque of 310 Newton-meters. It comes with a lithium-ion battery with a capacity of 68.8 kWh, which helps users save fuel money with a maximum driving range of up to 530 kilometers (NEDC standard) per single charge. This car model supports both AC and DC Fast Charge (CCS 2), and features a charging status indicator light at the charging port on the side of the vehicle, allowing drivers to know the status immediately. Before the launch, Honda released a Buy 1 Get 1 free campaign for those who reserve the Honda e:N2 electric vehicle: the first 100 units will receive a Honda Motocompacto foldable electric scooter worth 65,000 baht, which is considered something novel that other electric vehicle brands are unlikely to do.

However, in the production and assembly process of the Honda e:N2 electric vehicle, there has also been a change in Honda's business model. It operates as a CBU (Completely Built-Up) business, meaning vehicles that are 100% completely manufactured and assembled abroad, ready for immediate use upon arrival at the destination. This differs from CKD (Completely Knocked Down) vehicles, or cars whose parts are brought in to be assembled domestically. If it were not for this business model, Honda might not be able to compete with other electric vehicle brands. This e:N2 electric vehicle is manufactured at the joint venture factory of GAC Honda (Guangqi Honda) in China. Analysts point out that by adopting this business model, Honda will benefit from cheap production costs and cheap battery technology in China.

This also includes the 0% tariff barrier from the ASEAN-China Free Trade Area (ACFTA), which grants tax privileges to 100% electric vehicles imported from China. This is a reflection that flawlessly reinforces the GNI theory I mentioned in the previous article. Even though the money spent on building factories and employment will be recorded as China's GDP, and the cars will be driven on Thai roads, in the end, the profits from sales, the brainpower in design, and the technology royalty fees will be drawn back to nurture and be counted as the Gross National Income (GNI) of Japan anyway. It is truly the strategy of 'getting baptized in China to grow in Thailand, then sending income back to Japan' of modern Japanese capitalism. As for how substantially this profit money will flow back to Tokyo amidst the price war storm in Thailand, time and sales figures from now on will be the proof.
 

References 

Honda Motor Co., Ltd. (FY2026 Annual Financial Results):

Honda Motor Co., Ltd. (Global Sales Forecast Adjustments):

Toyota Motor Corporation (FY2026 Annual Financial Results):

Market Launch & Vehicle Specifications (Thailand)

 

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