Honda's electric vehicle face-off in China - P7 arrives, S7 prices drop

The electric car market in China is not showing any signs of cooling off anytime soon, and Honda is finding itself in an unusual position: competing with itself. The recent launch of the GAC Honda P7, an all-electric crossover, has stirred the pot by undercutting the price of its sibling model, the Dongfeng Honda S7. This price difference has forced Dongfeng Honda to quickly reduce the cost of the S7, creating an internal battle within the Japanese automaker's operations.

The GAC Honda P7 entered the scene with a starting price of RMB 199,900, which translates to about $27,200. This aggressive pricing strategy immediately put pressure on the Dongfeng Honda S7, which had been launched only a month ago. The S7, initially priced between RMB 259,900 and RMB 309,900 (approximately $35,360 to $42,170), suddenly looked significantly more expensive. In response, Dongfeng Honda slashed the S7's price by RMB 60,000 ($8,160) to align with the P7. They also sweetened the deal by offering a free package that includes five years of connected car services, unlimited internet, and a smart driving assistance package, valued at RMB 27,388 ($3,700).

While both the P7 and S7 share similar foundations, including a curved roofline, retractable door handles, and camera-based side mirrors, there are distinct styling differences. The GAC Honda P7 features unique headlights, taillights, and bumpers. The P7 offers five exterior color choices: purple, blue, silver, white, and black. Dimensionally, the GAC Honda P7 is close to its Dongfeng counterpart, measuring 187 inches long, 76 inches wide, and 64 inches tall, with a wheelbase of 115.4 inches. For comparison, it's slightly shorter than the updated Tesla Model Y but has a longer wheelbase.

Inside, the GAC Honda P7 mirrors the S7 with a 9.9-inch digital instrument panel and a dual-screen center console featuring a 12.8-inch and a 10.25-inch display, plus there's a 41.9-inch augmented reality head-up display. The infotainment system supports popular connectivity options like Apple CarPlay, Baidu CarLife, and Huawei HiCar. Both models also come equipped with the Honda Sensing driver-assistance system and a premium 16-speaker Bose sound system.

In the power department, the GAC Honda P7 offers the same powertrain options as the S7. The base model features a single rear-mounted electric motor producing 200 kW (268 horsepower) and 310 lb-ft of torque. It's powered by an 89.8 kWh battery, providing a claimed range of up to 404 miles based on the CLTC (China Light-Duty Vehicle Test Cycle) standard. The all-wheel-drive version of the P7 has a combined peak power of 350 kW (469 horsepower) and 568 lb-ft of torque, and it uses the same 89.8 kWh battery. This variant can accelerate from 0 to 62 mph in a brisk 4.6 seconds and has a CLTC range of 391 miles.

This internal competition within Honda comes at a time when the company's overall sales in China have been declining. Launching two very similar EVs under different joint ventures appears to be a risky strategy. Instead of attracting new customers to the Honda brand, the P7 and the S7 are likely to primarily compete against each other for a limited pool of buyers.

Via