Honda CEO's blunt China warning

Honda CEO Toshihiro Mibe warned that China's ultra-fast, low-cost electric vehicles threaten legacy automakers like Honda. "Unless things change, they could put us out of business," he said. (x.com) Mibe made the comments during Honda's fiscal year earnings call on May 9, 2024, as the company reported a 25% drop in annual profit to 844 billion yen ($5.8 billion). Honda's vehicle sales fell 1.5% to 3.57 million units amid slowing demand in China. (reuters.com) China produces over 60% of the world's electric vehicles, with brands like BYD and Nio offering models that accelerate from 0-60 mph in under 4 seconds for under $30,000. These cars undercut Honda's offerings, like the CR-V hybrid at $35,000 with slower acceleration. (cnbc.com) Chinese EV exports surged 70% in 2024 to 1.27 million units, flooding markets in Europe and Southeast Asia where Honda competes directly. The European Union imposed tariffs up to 38% on Chinese EVs in October 2024 to counter subsidies from Beijing. (bloomberg.com) Legacy automakers face pressure because Chinese firms control 75% of the global battery supply chain, enabling cheaper production—BYD's Seagull EV costs $10,000 in China versus Honda's equivalent at triple the price. Honda plans to launch 10 new EVs by 2027 but lags in battery tech. (wsj.com) Mibe highlighted China's edge in speed and cost from massive scale—BYD delivered 3 million vehicles in 2024 alone, dwarfing Honda's 4 million total output. He urged Honda to accelerate affordable EV development to survive. (electrek.co) Chinese makers like Xiaomi entered EVs in 2024 with the SU7 sedan, hitting 0-60 mph in 2.8 seconds for $30,000 and outselling Tesla's Model 3 in China within months. Honda's CEO called this pace "unprecedented." (techcrunch.com) The warning sparked online buzz, with the quoting X post gaining 2.7k likes and 248k views by April 2026; a related thread amplified it to 5.6k likes. Replies debated if tariffs or innovation will save firms like Honda. (x.com) Honda responded by cutting 9,000 white-collar jobs in North America in 2024 and investing $11 billion in EV production through 2030. Mibe's blunt talk signals the auto industry's pivot or perish moment. (detroitnews.com)