Honda plans to expand the adoption of Chinese standard parts in its China models, re-examining certain unique quality requirements that exceed local market demands and moving away from the problem of excess quality under past unified standards. The company aims to balance cost, quality, and local needs based on standardized components validated by the Chinese market. The new generation of gasoline vehicles developed for the Chinese market will make extensive use of local components. Meanwhile, Honda is studying the use of its Chinese partner's platform to build new energy models, with mass production expected to gradually begin between 2027 and 2028. This adjustment stems from Honda's sales pressure in China: current products are still mainly gasoline vehicles and hybrid models, and the relevant market segments have shrunk significantly, with recent quarterly sales in China declining by about 50% year-on-year. After the adjustment, procurement will no longer be categorized by suppliers' capital attributes; instead, component price, quality, and technological competitiveness will become the core evaluation criteria. Long-term Japanese suppliers will face direct price competition from Chinese companies and enter a screening stage. Existing suppliers may also incur additional R&D and validation costs due to standard adjustments and face the risk of order restructuring.
