Honda Australia fights back

The limited edition Honda Jazz Vibe is the unlikely first step in Honda's plan to reacquire lost market share in Australia.

Sourced from Japan rather than Thailand, the Jazz Vibe keeps volume sales of the light-segment hatch running at reasonable levels while Honda awaits the return to operation of its Thailand factory. The Jazz Vibe is just one element of Honda's plan to return to relevance in the local market. Stephen Collins, one of the importer's directors, outlined how the plan will roll over the course of this year, in his presentation to media during the launch of the new, ninth-generation Civic yesterday.

"2011 was a very tough year for Honda," said Collins. "It's well documented that our business was severely impacted by natural disasters in both Japan and Thailand. But now, that's history, and today marks a new beginning for our recovery and our rebuilding for the future in the Australian market.

"So we see all-new Civic as our line in the sand."

According to Collins, the importer will unfurl a multi-layered strategy, including "well targeted communications" to achieve sales of 40,000 units for the year — in contrast with the 2011 tally of barely 30,000 units. The strategy will run on a "quarter-by-quarter" basis, with first quarter of the year all about recovering from the logistical problems posed by the consequences of last year's natural disasters afflicting the company's Asian factories.

Collins reports that the Thailand factory won't be back on line until April, so the company is focusing on Japanese-sourced models — the Accord Euro and the Odyssey. And the Jazz Vibe is already working some magic for Honda, with the importer having taken 900 orders for the car since it was announced last month.

During the second quarter of this year, Collins anticipates Honda will see average sales volumes rise to 3500 units per month. At least part of that improvement will be due to the Thai factory being back on line, with Collins announcing that supply from Thailand will be 100 per cent restored by the advent of the third quarter, when the UK-sourced Civic hatch is launched here. Honda will also commence the run-out of the current CR-V during the third quarter, with the new model set to join the range during the fourth quarter.

For the first time, the CR-V will be sold in Australia in both front and all-wheel drive variants — a tactic that Honda hopes will provide a value opportunity for buyers of the SUV. By the end of the year, Collins believes the company will be selling as many as 4000 units per month.

Value for money is a smaller, but no less significant aspect of the importer's plan. It's a sign that the company has completed a reversal of its curious pricing strategy — as exemplified in the launch pricing of the City sedan. Since that ill-timed release, the company has been steadily improving the standard equipment specification and actually lowering prices of its important volume-selling small and light cars.

And with the latest Civic sedan, Honda has announced pricing ahead of the launch, Collins says, to allow dealers and sales staff enough lead time to prospect for new and repeat business ahead of the small car's local launch.

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