Honda’s global vehicle production declined in September and through the first nine months of the year, though U.S. output increased amid stronger sales, led by growing demand for hybrids.
First things first: The automaker’s global production fell 12% to 273,189 vehicles in September, down from 310,275 a year earlier, roughly matching August’s year-over-year decline, according to Just Auto.
Production in Japan declined 5% year-over-year to 62,356 vehicles in September, while overseas output fell 14% to 210,833 units, following a 9% decline in August.
North American production rose 7.6% to 1,307,588 vehicles year-to-date, with U.S. output climbing 11% to 816,270 units.
Production in Asia, excluding Japan, plunged 35% to 522,008 vehicles, including a 49% drop in China to 247,724 units, per Just Auto.
Beyond the numbers: Honda’s rising U.S. production stands in sharp contrast to its global slowdown, with increased domestic output potentially helping to ease supply constraints and support sales momentum in the market.
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Bigger picture: Honda’s U.S. production gains come amid strong sales growth, with deliveries rising 17.1% in September, 9.3% in Q3, and 4.7% year-to-date despite low inventories.
Honda hybrid models set a new Q3 sales record, while passenger car sales climbed 18.4% in September and 20.9% in Q3.
Despite just 17 days of supply, CR-V posted record Q3 sales of 110,730 vehicles (+16.6%) and record September sales of 34,788 units (+21.9%), according to Honda.
CR-V hybrids, accounting for 53% of the model’s sales mix, achieved record Q3 sales of 59,668 units and September sales of 18,521.
Passport sales rose 19.5% in September and 14.1% year-to-date, with the model posting its best quarter ever (+17.9%) as TrailSport trims accounted for more than 80% of deliveries.
What they’re saying: “Honda and Acura were able to buck industry trends and increase both sales and market share through a winning formula focused on affordability, record sales of hybrid models and a commitment to offer our customers a balanced lineup of passenger cars and light trucks,” said Lance Woelfer, Vice President of Auto Sales, American Honda Motor Co., Inc., per a Honda press statement.
Key takeaway: With strong hybrid demand and rising domestic output helping sustain U.S. sales growth, dealers with access to popular models like the CR-V will be better positioned to capitalize on demand, maintain sales momentum, and compete in a challenging market.
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