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News - HondaMore hybrids, more choices on Honda’s horizonRapid expansion of Honda hybrid line-up coming with 80 per cent electrified target5 Aug 2025 By TONY O'KANE OUTSIDE of the Civic Type R, ‘acceleration’ is probably a word that most industry observers would not have applied to the Honda brand in Australia of late, given its year-to-date share of the new car market being just 1.3 per cent – a symptom of continuous failure to achieve its modest annual sales target of 20,000 units since it was outlined publicly in 2021.
This situation should come to an end in the near future, according to Honda Australia’s recently appointed CEO, Jay Joseph – although he has stopped short of revising the 20,000-unit target.
Last year, Honda Australia only moved 14,092 cars and SUVs, an improvement over its 13,734 result the year prior, but still far from the mark. By contrast, the brand sold more than 43,000 cars here in 2019.
Persistent supply issues have reportedly been partly to blame, but a product strategy that has focused on high-margin but lower-volume top-spec variants has been an impediment to reaching a broader slice of the car-buying public, as has the confinement of hybrid powertrains to range-topping variants.
Mr Joseph, who comes to Australia with decades of experience at American Honda Motor Company, says Honda’s Australian operation can “do better”.
“We know that we can do better in terms of the number of customers that we serve every year than we do today,” Mr Joseph told media at a business update last week.
“I don’t want to throw out a number or a (sales ranking) position, necessarily, but we see significant opportunity for improvement by adding to our product line.”
When it comes to making additions to the range, the vast bulk of these will be hybrids.
The Civic only gained a lower-spec hybrid option (which came with the subtraction of the only non-hybrid variant from the regular Civic range) in late 2024, as did the HR-V, while the two most popular Honda nameplates in Australia, the ZR-V and CR-V, ask buyers to transact $54,900 and $60,400 respectively if they want a hybrid powertrain. Right now, the take rate on hybrids at Honda Australia is roughly 50 per cent.
“Anyone who’s been around this kind of business would know our strategy has been built on a transition to hybrid before a transition to BEV (battery electric vehicles),” said Honda Australia automotive director Robert Thorp.
“Fundamentally, that strategy we’ve held now for a number of years has not ultimately changed, and we think that even right now, whilst BEVs are penetrating the market and there’s a lot of noise about them, in reality hybrids are the choice for consumers.”
“And when you look at the market year on year, the growth of SUVs is all in hybrid. BEVs are flat, ICE (internal combustion engines) are declining, but all the growth is in hybrid technology. Of course, that’s a combination of not just products and what’s available in the market, but I think it’s a reflection of what consumers actually want.
“About half of our sales at the moment are hybrid in nature, and that trend will continue through the balance of this year. But, as we go into next year, there are going to be a number of changes to our line-up which will accelerate that even more.”
At the end of Q1 or start of Q2 2026, Honda will launch a major model update for the CR-V that will, in Mr Thorp’s words, “expand our hybrid offering quite significantly”, as well as bring a new all-wheel drive hybrid powertrain to the line-up.
Right now, the only hybrid CR-V variant is the front-wheel drive CR-V e:HEV RS, priced at $60,400 drive-away. With the CR-V range opening at $41,900, there’s plenty of room for more affordable hybrid CR-V variants to slot in.
The ZR-V will get a similar refresh in 2026, and seven new hybrid variants will be added across Honda’s CR-V and ZR-V showroom next year, with nearly 80 per cent of the offering to be hybrid by the end of next year, and hybrid uptake from customers expected to mirror that number.
Updates to the infotainment system will also see the second generation of Honda Connect grafted in to those models, with built-in Google and other connected car features.
Will hybrid proliferation help Honda win back customers at a time when Australian motorists have never been more spoiled for choice? We shall find out next year.  Read more |
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