Honda Rethinks Future of Iconic Models in Australia

Honda Rethinks Future of Iconic Models in Australia

Honda Australia’s lineup is undergoing a significant shift, with the brand openly admitting that the future of long-standing models like the Accord and Civic isn’t guaranteed. A changing automotive landscape, coupled with Honda’s global realignment, means the company is making tough choices about which vehicles to offer down under. This realignment reflects a broader industry trend: manufacturers are increasingly focusing on high-demand vehicles, particularly SUVs and electric models, to maximize profitability in smaller markets.

Shifting Priorities: Sales Drive Model Selection

According to Honda Australia’s new CEO, Jay Joseph, customer demand will be the primary factor determining which vehicles remain in the brand’s local lineup. “We’re not committing to any nameplate over the long term,” Joseph stated, highlighting the need for models to generate sufficient sales volume to justify their continued presence. Essentially, if Australians don’t buy them, Honda won’t sell them.

This shift in strategy is partly due to the challenges of operating in Australia. As a market without local manufacturing, Honda relies on importing vehicles, which includes expensive homologation processes to ensure right-hand drive compatibility. This dependence limits the company’s ability to tailor its lineup precisely to Australian preferences.

A Focus on SUVs and EVs

Honda’s future in Australia hinges on addressing gaps in its lineup and bringing in vehicles that cater to current trends. The company is actively looking at models to fill holes and broaden its offerings. The recent emphasis on SUVs is already evident, with the CR-V, HR-V, and ZR-V accounting for 93.7 percent of Honda’s Australian sales year-to-date.

Here’s a look at the models coming in the next few years:

  • Updated CR-V and ZR-V (March-April 2026): These SUVs will feature an updated e:HEV hybrid drivetrain and Google built-in AI software, enhancing both performance and connectivity. Importantly, all-wheel drive will become available for the first time in Australia.
  • Super-One EV (Second Half of 2026): This compact electric hatch aims to fill a gap in Honda’s lineup left by the Jazz, providing an entry-level electric option.
  • Reborn Prelude (Mid-2026): Honda will reintroduce the iconic sports coupe, catering to a niche market and potentially boosting brand appeal.
  • 0 Series EV Range (2027-28): This electric vehicle range includes a small and medium SUV and a mid-sized sedan, further solidifying Honda’s commitment to the electric vehicle market.

The Accord and Civic Under Review

While Honda is expanding its lineup with new models, the fate of the Accord and Civic remains uncertain. Registrations for both models have declined significantly, with only 78 Accords and 642 Civics registered as of September 2024. Their continued availability will depend on whether Honda can convince Australian buyers to return to these traditional models.

In conclusion, Honda Australia is adapting to a dynamic automotive landscape by prioritizing customer demand, investing in high-growth segments like SUVs and EVs, and making strategic choices about which vehicles to bring to the local market. This shift signals a new era for the brand in Australia, one where sales figures and evolving consumer preferences will dictate the future of its iconic models.