Honda's "Reverse Export" from Japan: A Disappointing Electric Vehicle and the Changing Role of Honda in China

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(Source: Jiemian News)

Honda China’s sales have significantly declined from their peak. This month, Honda China revealed that its February terminal sales were 28,000 units, down about 15% year-over-year. Among them, Dongfeng Honda’s CR-V continues to support the basic market. Meanwhile, the Honda Hunter e:NS2 produced at Dongfeng Honda’s Wuhan plant has been confirmed to be returned to Japan.

Honda China confirmed to Jiemian News that the Hunter Light e:NS2 model is exported to Japan for sale, with a limited sales volume of 3,000 units. The pre-sale in Japan started as early as March 19, with official launch expected in spring 2026.

In 2024, Dongfeng Honda will launch the Hunter Light e:NS2 pure electric vehicle. Screenshot of Dongfeng Honda’s official data

Honda China also stated that after entering the Japanese market, the model will be officially named “INSIGHT.”

This naming is also meaningful. According to official descriptions, “Insight” was Honda’s first mass-produced hybrid model. For Honda, this name also downplays the Chinese elements of the Hunter Light e:NS2, instead positioning it as part of Honda’s electrification narrative.

For a joint venture brand still mainly relying on fuel SUVs to support sales, this reverse flow seems unusual. Honda in China has not yet reached a point where no one buys cars; fuel vehicles still underpin sales, but pure electric products have not yet emerged. The Hunter Light can only seek opportunities in other markets first.

An electric vehicle that has lost its voice in China begins to be sold back in Japan

As early as the 2024 Beijing Auto Show, Dongfeng Honda launched the Hunter Light e:NS2 pure electric coupe. It was officially launched in June of that year, with a limited-time promotional price of 159,800 to 179,800 yuan.

This vehicle was developed locally by the Dongfeng Honda team and equipped with CATL’s ternary lithium batteries, with a range of up to 545 km. It is also one of Honda’s key electric products in China. According to Dongfeng Honda’s official data, during the new car launch, they stated that they aim to accelerate electrification and reduce prices through the Hunter Light “breakthrough technology.”

However, after its launch, the Hunter Light failed to establish a stable foothold in the Chinese market. Data from Yiche shows that since its release in the second half of 2024, retail sales have remained in the double digits to hundreds. In February 2026, retail sales were 43 units, with 960 units exported.

Hunter Light e:NS2 sales trend chart over the past 12 months. Chart by Jiemian News reporter Wang Zhen

Honda China did not comment on the significance or future plans for exporting this model to Japan.

Automotive industry analysts believe that export itself is not new, but the “reverse export” is particularly noteworthy. In the past, Japanese brands imported mature products into China. Now, a Honda electric vehicle produced in China is being supplied back to the Japanese market.

Zeng Zhilin, General Manager of GlobalData (Shanghai), told Jiemian News, “This indicates that China’s supply chain and manufacturing capabilities are now recognized by Honda headquarters.”

On March 12, Honda held an emergency press conference, announcing the cancellation of three pure electric models originally planned for North American production: Honda 0 series and Acura RSX development and launch plans. Honda has clearly slowed down its pure electric push. The introduction of Hunter Light into the Japanese market is seen by analysts as a practical move to supplement Japan’s pure electric vehicle market.

Automotive analyst Lin Shi believes that the battery’s range makes this vehicle competitive in Japan’s new energy market. After returning to Japan, Hunter Light will enter the local pure electric passenger car segment, intersecting with models like Toyota’s bZ4X. However, in terms of positioning, it is not directly comparable to Toyota’s bZ4X series; competition will mainly be in Japan’s local new energy market share and Japanese brands’ pure electric offerings.

Zeng Zhilin also mentioned that Honda might be testing whether this model can become a future source of technology for its electric vehicles.

This electric vehicle, which failed to make a mark in China, has not been abandoned by Honda. Instead, it has been sent back to Japan and incorporated into a more realistic sales plan.

Honda in China still relies on old products

At least in Dongfeng Honda, the CR-V is still supporting sales.

In early March, Dongfeng Honda announced that February sales were 17,583 units, with CR-V sales reaching 10,102 units, accounting for nearly 57%. In comparison, the sedan Inspire sold 2,801 units during the same period.

The popularity of the CR-V and Honda’s accumulated user base in the fuel SUV market are related. A CR-V owner from Xi’an, Chen Shaoyun, told Jiemian News that he bought a high-end version in 2008, and over more than ten years, aside from routine maintenance, he rarely encountered major issues. He has always been satisfied with the vehicle’s space and comfort.

April 19, 2023, Qingpu District, Shanghai, at the 20th Shanghai International Auto Industry Exhibition, Honda CR-V. Jiemian News photo

Durability and spaciousness, qualities built up during the fuel era, still play a role today, making the CR-V one of Dongfeng Honda’s most stable sales sources.

This once highly sought-after star model is now difficult to sell easily based solely on brand inertia. Data from Yiche shows that Honda’s new 2026 model has a manufacturer’s suggested retail price ranging from 185,900 to 263,900 yuan. Several Dongfeng Honda 4S stores in Beijing offer cash discounts of up to 48,000 yuan. Multiple salespeople told Jiemian News that after subsidies, the net transaction price is roughly between 130,000 and 160,000 yuan, with additional costs for purchase tax and insurance.

Automotive analyst Lin Shi told Jiemian News that the reputation built up by the CR-V can still attract consumers, but only if the price drops enough to compete directly with domestic fuel vehicles and some electric models.

“Profit margins are still there, but very thin,” he said.

With such discounts, the CR-V’s sales are mainly supported. Zeng Zhilin believes that main models like the CR-V need large discounts to move volume. In the short term, this helps maintain factory operation rates, dealer networks, and cash flow. However, the downside is that per-vehicle profit is squeezed, and the brand’s pricing system may be further weakened.

More problematic is that, so far, Honda has not launched a new product in China to replace this position.

This is not just a problem for Dongfeng Honda

Similar pressure also exists for GAC Honda.

GAC Group’s production and sales report shows that GAC Honda’s February sales were 9,220 units, down 69% year-over-year. Data from Yiche indicates that the Honda Accord sold 4,630 units that month, nearly supporting half of GAC Honda’s total sales.

GAC Honda has also been pushing electric products in recent years, launching models like e:N P2 and P7, but none have become new growth points. Especially the electric SUV P7, which Honda China had high hopes for, has shown no significant market performance. Data from Yiche shows that over the past six months, monthly sales ranged from 152 to 1,200 units. In February 2026, only 152 units were sold.

Zeng Zhilin believes that both Dongfeng Honda and GAC Honda face failure in their electric transformation. GAC Honda, besides failing to develop electric models effectively, also faces pressure from organizational and systemic issues.

In August 2025, GAC Honda replaced its Chinese top executive. Zeng Zhilin thinks that management changes tend to impact strategic implementation and operational efficiency. GAC Group’s production and sales report shows that in January, GAC Honda produced 9,331 units, a 65% decrease compared to the same month last year.

Hunter Light’s reverse export, Honda’s new arrangement in China

Hunter Light is being exported back to Japan. At this point, Honda is rearranging its electrification pace and Chinese operations.

On March 12, Honda announced the cancellation of development and launch plans for several pure electric models in North America. They also singled out China for separate discussion, noting that its electrification process differs from other regions.

Honda President Toshihiro Mibe stated that China’s EV market continues to expand, and in terms of product launch cycles, electrification advancement, and intelligent technology application, the progress far exceeds Honda’s original expectations. He admitted that Honda has not been able to offer more cost-effective products than local Chinese automakers in this competitive environment.

Honda China’s official website shows that in 2025, Honda’s terminal vehicle sales in China totaled 645,000 units, down about 24% year-over-year. This marks five consecutive years of decline.

A press release on the same day also mentioned that Honda has re-evaluated the recoverability of its investments in China accounted for under the equity method and has lowered its expected returns.

Zeng Zhilin believes that globally, Honda’s push toward electrification has significantly slowed or even stagnated, and that pure electric vehicles are not its current priority investment focus.

Against this backdrop, the return of Hunter Light to Japan’s market appears more as a stopgap measure for a struggling electric vehicle rather than a sign of a renewed electric strategy.

Several analysts believe Honda will not withdraw from the Chinese market. For Honda, China remains an important market for its supply chain, observing electrification trends, and technological iteration. Honda also stated at the press conference that it will, in the future, strengthen the application of intelligent and electric technologies tailored to the Chinese market, and build a more suitable supply chain system to improve product capabilities and cost competitiveness.

Lin Shi told Jiemian News that if Honda’s product development in China cannot further localize, its competitiveness will continue to decline. Zeng Zhilin believes that Honda’s future in China is more likely to adopt a limited investment approach, relying on local partners for adaptation and maintaining necessary product updates.

Beyond Japan, Honda is also starting to sell this China-made electric model in larger overseas markets. Honda’s official website shows that the Hunter Light e:NS2, along with its homologous model e:N2, has begun pre-order and delivery arrangements in Thailand.

The Hunter Light, which did not achieve scale in China, has been sent to Japan and Thailand. Clearly, Honda’s Chinese-made vehicles are not only for the Chinese market anymore.