Honda's Q2 sales make for grim reading but its products remain in high demand.
Across the industry, we've started to see pricing for certain vehicles soften after roughly two years of hellish dealer markups and extremely low inventory levels. Still, for many OEMs, things aren't looking great, with supply chain disruptions the main cause of the disruption.
Honda is the latest brand to reveal its Q2 sales reports, and it doesn't make for pleasant reading. Sales volumes are down by 51.2% in total, and it only gets worse the closer you look, thanks largely to models like the Honda Civic and Odyssey. This is not just Honda North America. This is Honda and Acura combined, and these are the worst offenders.
Measured year-to-date (YTD), the Honda Civic was down 54% from last year, selling 9,633 units compared to 32,667 in 2021. The Odyssey is even worse, down 56.6% from last year, or 2,721 units to 8,397. Acura hasn't fared well either and is down 50.6% in total sales volumes this quarter. For that, the Acura TLX is largely to blame. Sales of that dropped by a staggering 53.8%, or 7,122 to 15,412.
Still, Honda says that these metrics aren't the best measure of the brand's second quarter. "With strong turn rates of up to 90 percent for core Honda and Acura products, it's clear that success is a relative term in today's business environment and sales volume is not the best measure of true customer demand," said Mamadou Diallo, vice president of Auto Sales for American Honda Motor Co.
Honda is also hoping that new models can help ease the sharp reduction in sales, "as we continue an incredible cadence of new model introductions, including the recent launch of the all-new Honda HR-V and Acura Integra," concluded Diallo. Despite the disappointing quarter (and year) for the brand, there were some small success stories.
Not only did the Integra make a successful debut, the Type R is well on its way, and Acura NSX sales rose by 153% in its final year. The brand's performance models remain popular, and we imagine its more pedestrian cars will soon recover once the supply chain does.