Photo: Wikimedia Commons / Public Domain
In a letter sent to customers, GAC Acura announced it will cease both sales and production of its models starting next year. The move comes only six years after the Japanese brand has started its Chinese business in partnership with GAC. The sluggish sales were one of the reasons that prompted the cease of operations.
Honda’s subsidiary failed to spark Chinese customers’ imagination, especially as the brand lacked the electrified models that the Chinese market wants. Acura entered the market in 2016 with the CDX, a crossover that was later joined by the China-only TLX-L sedan and the RDX. Annual sales peaked in 2019 when the brand sold 14,701 vehicles, but interest dwindled and the sales have plummeted to just 6,554 vehicles in 2021.
GAC Acura sold only two models after the TLX-L was discontinued, and this made it an easy target for German brands. The compact CDX stood little chance against the more popular BMW X1 and Audi Q3. Its bigger brother RDX also faced an uphill battle against the likes of Mercedes-Benz GLC and BMW X3.
Acura is not the first Japanese brand that fails to establish a foothold in the Chinese market. Nissan’s Infinity was also withdrawn in January, with all the operations absorbed under Dongfeng Nissan’s umbrella. This will also happen to Acura’s business, which will be integrated into GAC Honda. This includes GAC Acura employees and the services provided to existing GAC Acura customers, according to carnewschina.com.
The Chinese market increasingly favors sales of electrified vehicles, with Chinese brands holding a firm grip on the market. Japanese brands have been notoriously slow at adopting electrification and this has led to their downfall. Hopefully, the new partnership between Honda and General Motors will produce the badly needed electric vehicles.
Honda has already teased the Chinese customers with the e:NS1 concept based on the HR-V. We must stress that the Chinese have already mocked Honda’s efforts to attach the battery under the chassis of the car. They say the Chinese companies did that move more than 10 years ago and you know this is bad when you’re compared with a copycat industry from the past.
GAC Acura sold only two models after the TLX-L was discontinued, and this made it an easy target for German brands. The compact CDX stood little chance against the more popular BMW X1 and Audi Q3. Its bigger brother RDX also faced an uphill battle against the likes of Mercedes-Benz GLC and BMW X3.
Acura is not the first Japanese brand that fails to establish a foothold in the Chinese market. Nissan’s Infinity was also withdrawn in January, with all the operations absorbed under Dongfeng Nissan’s umbrella. This will also happen to Acura’s business, which will be integrated into GAC Honda. This includes GAC Acura employees and the services provided to existing GAC Acura customers, according to carnewschina.com.
The Chinese market increasingly favors sales of electrified vehicles, with Chinese brands holding a firm grip on the market. Japanese brands have been notoriously slow at adopting electrification and this has led to their downfall. Hopefully, the new partnership between Honda and General Motors will produce the badly needed electric vehicles.
Honda has already teased the Chinese customers with the e:NS1 concept based on the HR-V. We must stress that the Chinese have already mocked Honda’s efforts to attach the battery under the chassis of the car. They say the Chinese companies did that move more than 10 years ago and you know this is bad when you’re compared with a copycat industry from the past.
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