American Honda Sales Plunge 51% in 2nd Quarter Yet Demand Remains Strong

HONDA 11 photos
Photo: HONDA
Despite the excitement building over the introduction of the most powerful Honda-branded production vehicle ever offered in the U.S. later this month- the all new 2023 Honda Civic Type R, the company is enduring a huge slump in sales.
Sales of Honda-brand vehicles in the U.S. were down 51% to 239,789 for the second quarter while combined Honda and Acura brands sold just 71,048 in June.

Despite the numbers, Mamadou Diallo, American Honda vice president of sales, sounded rather upbeat saying, "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."

The statement is supported by high demand for the company's redesigned, third-generation (known in the U.S. as the second generation as the initial model was not available in the U.S.) HR-V subcompact crossover, which generated 6000 customer pre-orders after arriving on dealer lots in June. In addition, Honda's new Acura Integra last month became the brand's best-selling car.

Supply issues have limited sales of the popular Acura MDX and RDX crossovers and seemed to have impacted Honda to a greater extent than other U.S. automakers. Ford, for example, sold 483,688 vehicles in the second quarter, up 1.8% from last year. Sales for the legacy Detroit automaker were up 31.5% for June alone.

The highly anticipated Type R Civic will have performance enhancements over the base hatchback with a lowered suspension, vented hood, and larger wheels with Brembo brakes. Moreover, the current generation 2.0 turbocharged inline-four engine performance will be upgraded from 306HP to a rumored 340HP with a six-speed manual transmission.

Honda is hopeful that introducing new and redesigned models and improvements in supply chain issues will ignite its U.S. car sales in the second half of the year. However, the company has not released a forecast for the balance of 2022.
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