Despite redesigning core products from Honda and Acura, American Honda Motor Co. recorded the steepest annual sales decline of any major automaker, trailing the rest of the recovering industry. I’m still struggling to catch up.
American Honda sales declined in December and the fourth quarter, marking the 17th straight month of decline.
American Honda’s vice president of sales Momadou Diallo said the decline in sales was due to inventory shortages and ongoing supply issues, and that sales “will continue to recover” once inventories recover.
“We will start 2023 with about double the inventory on hand we had in 2022,” Diallo said. “This means a healthy increase in sales this year.”
Honda’s redesigned Accord and Pilot reach customers this month, closing the loop on the brand’s major 2022 product rollouts, which include the HR-V, CR-V and Civic Type R. Acura’s Integra, which was successfully launched in 2022, is a variation of the Type S this summer.
Both brands also plan to add new all-electric crossovers, the Honda Prologue and Acura ZDX, possibly in the second half of this year.
American Honda finished 2022 with US sales of 983,507 units, down 33% from 2021. Total automaker sales in the fourth quarter fell 11% to 255,250 units compared to the same period in 2021.
December total sales were down 11% to 93,843 units, but it was the best month for the Japanese automaker since March.
brand: Honda ended the year with sales of 881,201 units, down 33%. Shipments in the fourth quarter he fell 11% to 227,596 units. Honda’s December sales were down 11% year-on-year to his 83,407 units. Despite the decline across the board, Honda achieved his second-best month and quarter of 2022.
Acura ends 2022 with 102,306 sales, down 35% from 2021.
Acura’s sales in December fell by 5.5% to 10,436 units, but this is due to sales of the 3-row MDX surpassing 5,000 units and Integra’s deliveries surpassing 2,000 units for the third straight month. The month was the highest for the brand since April.
Notable nameplates: Honda Accord down 24% through December. Civic, 49% off. HR-V, 16% down. CR-V, 34% off. Ridge is up 3.4%. Acura TLX is down 56%. MDX, 23% off. RDX, down 57%.
Incentive: TrueCar reported $1,000 per vehicle in December, down 37%, and $1,009 per vehicle in the fourth quarter, down 60% from the same period last year.
Average transaction price: According to TrueCar, it was up 5.7% in December to $37,299 and in the fourth quarter was $37,428, up 21% from a year earlier.
Fleet mix: 1.7% of sales in December, according to TrueCar.
Quote: “We all know that we have the best Honda and Acura product lines in our history, and with inventory that meets strong customer demand, our sales will continue to recover.” — Mamadou Diallo , Vice President of Automotive Sales, American Honda.