Honda, Toyota race toward close finish in 2016
Honda Motor Co. sales in China surpassed those of Toyota Motor Corp. in the first 11 months of the year, setting up the Japanese rivals for a photo finish in their rankings for the year.
Through November, Honda sold roughly 14,500 more vehicles than Toyota, according to sales reports released by the two companies on Friday.
For the year to date, Honda delivered more than 1.11 million vehicles in China, up 28 percent from the same period last year. Through November, Toyota's China sales increased 10 percent to 1.10 million vehicles.
Honda had a big month in November, as sales jumped 40 percent year on year to 126,713 vehicles.
Most Honda models qualify for China's 50 percent purchase tax cut for vehicles with engine displacements of 1.6 liters or less. The tax incentive is to expire at year end.
According to Japanese news agency Nikkei, Toyota's China deliveries in November rose 6 percent from a year earlier to 111,100 vehicles.
Chinese consumers have flocked to Honda's new models, including a new version of the Civic sedan, as well as particularly strong offerings in the booming crossover and SUV segments.
To meet rising demand, Japan's No. 3 automaker plans to break ground Thursday on a factory in central China's Wuhan, according to a media invitation Honda has sent out.
Auto sales in China remain under pressure from slowing economic growth, with analysts predicting weak growth next year despite a rebound in 2016 thanks to tax incentives.
SUVs and crossovers, though, have been a major exception, with the segment growing 46 percent year to date, as Chinese warm to larger cars.
A Toyota spokesman in Beijing declined to comment on its sales performance vis-a-vis rivals.
"We don't have a blind focus on boosting sales," he said. "Our main objective in China is to achieve steady growth of our business, by focusing on customer satisfaction, including creating a quality sales and service environment."
A Honda spokeswoman in Beijing said, "Beating a particular rival brand isn't our business objective in China. We focus on Chinese consumer needs and feel the strong sales momentum we have in China now is evidence that our strategies are working."
Honda has recorded nine consecutive months of double-digit sales growth in China and is nearing its sales target of 1.18 million vehicles, which it revised upward by roughly 100,000 units in October.
Toyota has traditionally led its rival in China, selling 240,000 cars more than Honda as recently as 2014.
The Japanese automakers still trail far behind market leaders General Motors and Volkswagen AG, which both sold 3.6 million vehicles last year in China.
For the year to date, Honda delivered more than 1.11 million vehicles in China, up 28 percent from the same period last year. Through November, Toyota's China sales increased 10 percent to 1.10 million vehicles.
Honda had a big month in November, as sales jumped 40 percent year on year to 126,713 vehicles.
Most Honda models qualify for China's 50 percent purchase tax cut for vehicles with engine displacements of 1.6 liters or less. The tax incentive is to expire at year end.
According to Japanese news agency Nikkei, Toyota's China deliveries in November rose 6 percent from a year earlier to 111,100 vehicles.
Chinese consumers have flocked to Honda's new models, including a new version of the Civic sedan, as well as particularly strong offerings in the booming crossover and SUV segments.
To meet rising demand, Japan's No. 3 automaker plans to break ground Thursday on a factory in central China's Wuhan, according to a media invitation Honda has sent out.
Auto sales in China remain under pressure from slowing economic growth, with analysts predicting weak growth next year despite a rebound in 2016 thanks to tax incentives.
SUVs and crossovers, though, have been a major exception, with the segment growing 46 percent year to date, as Chinese warm to larger cars.
A Toyota spokesman in Beijing declined to comment on its sales performance vis-a-vis rivals.
"We don't have a blind focus on boosting sales," he said. "Our main objective in China is to achieve steady growth of our business, by focusing on customer satisfaction, including creating a quality sales and service environment."
A Honda spokeswoman in Beijing said, "Beating a particular rival brand isn't our business objective in China. We focus on Chinese consumer needs and feel the strong sales momentum we have in China now is evidence that our strategies are working."
Honda has recorded nine consecutive months of double-digit sales growth in China and is nearing its sales target of 1.18 million vehicles, which it revised upward by roughly 100,000 units in October.
Toyota has traditionally led its rival in China, selling 240,000 cars more than Honda as recently as 2014.
The Japanese automakers still trail far behind market leaders General Motors and Volkswagen AG, which both sold 3.6 million vehicles last year in China.
