Honda looks for more SUV sales

Honda Australia is looking for stronger sales performances from its SUV portfolio. And has hinted that the brand's softroaders may follow Civic down a sportier path.

The Japanese company's sales performance has largely hinged on the success of the HR-V compact SUV in the last year or so. Indeed so far in 2016 the small five-door has accounted for almost one third of Honda's deliveries. And with the wider SUV segment now approaching one third of the overall market, the brand is keen to build on this softroader momentum.

Speaking in Melbourne this week, Honda Australia sales boss, Stephen Collins, told media that he believed there was extra sales potential in the existing SUV models, but also admitted the company needed to provide more options to SUV buyers.

HR-V, he says, is still in short supply.

"Our stock in some months has been less than a month, and that's dealer stock and our stock [combined], so [it makes it] very, very difficult to fulfil all of the orders," Collins told motoring.com.au.

"Probably the biggest shortfall has been the top spec car. We're trying to work with the factory to get more... More than our fair share... It's hard to put a number [on the potential extra HR-V sales], but it might be up to a couple of hundred a month," Collins joked.

He says adding a turbo-diesel engine option is a potential path to achieving the extra volume, but ruled out any 5+2 variant of the small SUV.

"It won't be a seven-seater. [But] Yeah, one of the questions is diesel. We're still working on diesel – I think... there's some opportunity there."

But for a step-change in SUV volume, Collins hints Honda Australia is looking towards the next CR-V – around 18 months away. And he says a sportier offering will be key to grabbing more share.

"You know we're looking at everything [with the next CR-V]. I think technology, engine technology, is an important point that we're looking very closely at.

"[But] I think sportiness comes down to a few factors, not just styling. It's [got to be] fun to drive, it's how it drives, which then gets down to the engine technology, you know, suspension, et cetera, et cetera, et cetera. So I think they're all the things where we're looking to improve in and I guess the next full model change on that front, is CRV.

"We're [also] looking at can we expand opportunities into... More into the lower end of larger SUVs and the seven-seat question comes up. So we're exploring all of those opportunities... Fundamentally, CR-V has a very good reputation but we need to, in the next generation car... pick up on those."

But for the time being a sportier, seven-seat CR-V, should it surface, will remain Honda's top SUV. US models like the Pilot, Acura badged MDX and the Ridgeline pick-up are still off-limits, he says.

"The issue is right and left hand drive. It's probably the same answer I've given you for the last three years – I wish it was different but it's not.

"The biggest opportunities in our line-up, where we don't have competitors [entrants], are the large SUV and pick-ups [markets]. On both of those fronts, there are vehicles in the USA but there's no availability for right-hand drive.

"If a right-hand drive becomes even half an option, we'll be at the front of the queue for it. But there's no prospect of that at this stage...

"There's no issue with recognising the opportunity here, but at the end of the day, the business case and the investment and the return on that investment has to make sense," Collins said matter-of-factly.