Cheaper hybrids on the way from Honda

Honda Australia has confirmed it could introduce battery-electric vehicles to Australia sooner than 2028, while also announcing it is about to commence the roll-out of cheaper hybrid variants across most of its model ranges.

Petrol-electric hybrids are currently the flagship grades in all three Honda SUV model lines – HR-V, ZR-V and CR-V.

Hybrid is the only powertrain offered with the new Honda Accord, while only the popular high-performance Civic Type R is more expensive than the e:HEV in the Civic small-car range.

The expansion of Honda’s hybrid line-up should begin with the facelifted HR-V compact SUV. A facelift was revealed for its Japanese equivalent in March.

That facelift included an updated hybrid system that is claimed to reduce engine noise and improve responsiveness.

In the current Honda line-up the HR-V e:HEV L is priced at $47,000 drive-away, while the non-hybrid Vi X costs $36,700 drive-away – a gap of $10,300.

The gap in the ZR-V line-up is a minimum $6400 and in the CR-V – where the hybrid is front-wheel drive and the flagship petrol-only variant is all-wheel drive – it’s $2900.

The gap between the petrol and hybrid Civic models is $7800.

Honda director Carolyn McMahon told media at a press conference last week that hybrids were accounting for about 40 per cent of sales volume versus a 25 per cent target, even with their premium positioning.

“We have good take-up of hybrid and you will start to see an expansion of that later in this year.

“Essentially now we have launched everything [as a] top variant, you will now start to see through different NMCs (New Model Changeovers) or different upgrades… that expanded down throughout the range.

“More affordable hybrids are on the way.”

Asked if the cheaper hybrids would be positioned closer to their petrol-only equivalents on price – as per the sub-$3000 impost that has proved so popular for Toyota, whose hybrids now comprise half of its sales, and prompted it to drop non-hybrid vehicles from some of its model ranges – McMahon indicated that could happen.

“You will see when we start to introduce more hybrid that the pricing… that it will be more inline with the market,” she said.

“We will be looking to price it at the level required in the market.”

On EVs, McMahon said the “interpretation” of her comments at a media roundtable in March 2023 – which were widely reported including by carsales – stating that 2028 would be the earliest introduction date for Honda EVs in Australia were not accurate.

“It will be earlier than that,” McMahon said. “I can’t tell you exactly [when] at this point because we are still firming that up.

“But in the background we are walking really hard on Honda’s movement into introducing battery-electric into the Australian market.

“When we have firm details to share we will share that with you.”

McMahon stated at the March 2023 roundtable that Honda’s medium-term plan focussed on hybrids. Long-term there would be attention on EVs.

When she was asked last year what timeframe “mid-term” meant, she replied:

“I’d be saying the next five years, but having said that we are continually monitoring the market, what vehicles are available to us, what’s shifting in the market.”

That reply prompted the 2028 estimate by multiple automotive website reports written by some of Australia’s most experienced motoring journalists.

There is an abundance of potential choices for Honda Australia when it comes to EVs, as its parent has committed to launching at least 30 of them by 2030.

Currently, Honda has revealed 0 Series concepts that will debut as production cars in 2026, the new Yeh series EV targeted at China, a joint-venture with Nissan intended to develop affordable EVs and another JV with Sony for the Afeela EV brand.

“We’ll draw from wherever that can meet the compliance requirements of this market, can meet the majority of consumer requirements from the market,” said McMahon.

“That what’s under discussion at the moment… we are not ruling anything in or out.”

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