Honda Australia is doubling down on its hybrid strategy, with both the CR-V and ZR-V medium SUVs set to receive major updates in 2026.
These mid-life model changes will see Honda expand its electrified powertrain range and finally add an all-wheel drive hybrid system to the CR-V line-up.
Honda executives revealed to carsales last week that with the model refresh, the company expects more than 80 per cent of its range to offer hybrid powertrains by mid-2026 (including the new Prelude coupe) and that nearly 90 per cent of sales would be hybrids.
“Consumers will still want hybrids en masse, so that’s where the market is going to be over the next 12 to 18 months,” Honda Australia automotive boss Rob Thorp said.
“ICE is declining, but all the growth is in hybrid technology … while BEVs will play a role in the future segment … HEVs will be a technology that en masse, consumers are going to be more comfortable to engage with over the next two to three years.
“For the consumer, behavioural change is hard – when you transition to a hybrid, your behaviours remain very much the same. All you're doing is filling it up a lot less.”
Crucially, both the CR-V and ZR-V models will feature a Google built-in infotainment system, a first for Honda in Australia and a move the company believes will distinguish it from rivals in the mainstream SUV market – Volvo and Polestar have partnered with Google since 2019.
While specifics are yet to be confirmed, Honda said the CR-V will also add an all-wheel drive hybrid variant, addressing growing consumer demand and competition from the top selling Toyota RAV4 and the Hyundai Tucson, among others, in the hotly contested medium SUV segment.
The current CR-V and ZR-V line-ups only include a single front-drive hybrid variant each; the e:HEV RS and e:HEV LX respectively.
The company reaffirmed that its core strategy remains a ‘hybrid-first, BEV-later’ approach, believing hybrids are still the most accessible way for buyers to reduce emissions without changing their driving behaviours.
Its first full battery electric vehicle is due in the second half of 2026, with a specific model to be confirmed in the coming months.