Honda Australia to rely on small vehicles for sales boost

There’s no denying there’s been a slow start to the 2014 new-vehicle sales year, with the Australian market down three per cent year-on-year to the end of April.

More specifically, a trend away from light vehicles to the (larger) small segment has become evident, thanks to a raft of new models and high pricing competition in Australia’s single biggest sales segment.

Currently, Honda sales are down 33.6 per cent year to date, according to VFACTS data for April, dropping from 14,743 units in 2013 to 9789 this year.

Speaking at the local launch of the Honda City light sedan, Honda Australia Director Stephen Collins highlighted the diversity of the Australian auto industry and the need for Honda to respond to it.

“With more brands generally and the cessation of local manufacturing and the run-outs that will come as a result, we’ve had to refocus on the cores of the brand. That means product, customer and the dealer network.

“Trends indicate there are more cars per household and there is more disposable income to spend. Additionally, our customers are demanding more digital media functionality. We aim to provide that connectivity safely, through our Display Audio system, with the aim of attracting younger buyers,” he explained.

In terms of product, the short-term Honda focus is on sub-Civic offerings. This includes the new City, which is expected to sell around 250 units per month, along with the upcoming Jazz, which will be launched locally in July this year.

“We anticipate Jazz to sell 1000 units per month… as City and Jazz are both being sourced from Thailand, we expect no supply issues,” Collins said.

Both light segment models are expected to contribute to a Honda sales boost, from an average of 2666 to a projected figure of 3067 per month in the second half of 2014.

Additionally, Honda’s all-new small SUV, to wear the HR-V badge, will come on-stream in January 2015.

“HR-V will be Honda’s core model, after the Jazz. We will roll out the petrol initially, to be followed by a diesel offering at a later date,” he said.

Honda Australia expects to sell a total of 38,000 units in calendar year 2014, a figure revised down from the anticipated 40,000 units predicted at the start of the year.

“This is due to the general softness of the market,” said Collins.