Honda CR-Z axed in Australia

Despite winning one of Australia's most prestigious car awards three years ago, the Honda CR-Z's death knell has finally been sounded in this country.

After Europe's decision to stop selling the Insight and CR-Z models in February 2014, Australia has followed suit 11 months later, with the car removed from the Honda.com.au website.

It is also understood that several Honda dealers are no longer ordering the CR-Z, as stocks of the car are expected to be depleted soon. As previously reported, there is no sign of a second-generation model on the horizon, although a new-generation S660 could form a replacement of sorts.

Honda Australia's public relations manager, Melissa Cross, confirmed the CR-Z was being 'run out'.

"We are currently running out our hybrid model range in order to introduce new Hybrid Sport technology under the 'Earth Dreams Technology' umbrella," she said.

"The first of these new models will be the Accord Hybrid [two-motor system] in the first half of this year. The next will be the NSX, which we plan to launch in 2016.

The CR-Z arrived in Australia in late 2011, when it was dubbed the world's first hybrid car with a manual gearbox. It attracted plenty of attention for delivering sports car handling and hybrid efficiency – something now favoured by the world's most sought-after hyper cars like the McLaren P1 and Ferrari LaFerrari.

It was also awarded the Wheels Car of the Year for 2011.

The CR-Z two-door sports hatch is powered by a 1.5-litre four-cylinder engine and an electric motor, combining for 100kW and 190Nm.

However the car failed to captivate buyers, its $38,490 price, slow acceleration, small boot and general lack of practicality sticking points for many potential buyers. When the Toyota 86 and Subaru BRZ arrived in mid 2012, sporting more power and rear drive propulsion, it made life tough for the quirky front-drive hybrid from Honda.

Honda released an official supercharger kit for the CR-Z in the USA that boosted power by 50 per cent to 150kW, but it was never offered in Australia.

It's understood slow sales have lead to the vehicle's demise. Sales of the CR-Z in Australia grew more than 48 per cent in 2014, although it was from a very low base the year prior:  58 sales in 2013, then 86 sales in 2014.