Honda Australia sales rebound to pre-agency model levels

Honda's move to an agency model might have resulted in a sales dip last year, but solid performance for the brand in May are showing a more positive picture following its move to fixed pricing.

In July 2021, Honda transitioned its dealership network from franchise operations to a direct sales or agency model, taking ownership of the stock and setting non-negotiable, fixed prices across Australia while aiming.

While the switch resulted in an almost immediate drop in sales, Honda remained steadfast, with targets being met as the brand adjusted its approach away from quantity and more towards quality, premium sales.

Now 10 months on, Honda has recorded greater year-on-year sales over a one-month period for the first time since it implemented the agency model, with the 1423 units sold this May beating the 1403 shifted 12 months prior.

3

CR-V is currently Honda's best-selling model

Although the manufacturer's post-switch peak of 1640 sales was recorded in December last year, this figure was still 37 per cent lower than the 2619 vehicles registered at the same point in 2020.

Of the five models currently offered by Honda in Australia, only the CR-V and Accord recorded higher sales than last year, with the 861 units of the crossover SUV shifted (compared to 577 in May 2021) while the Accord notched up seven sales for the month, three more than last year.

3

The new HR-V could boost Honda's sales

The new Civic also had its best month of the year, as 98 examples found new homes, still 34 units down on its predecessor's efforts in May last year with year-to-date sales have dropped from 1840 to 361 – although it's important to note the Civic range has been reduced to one solitary grade compared to the five of its predecessor.

Despite meeting Honda's sales expectations, the Civic has been the driving factor behind the manufacturer's year-on-year slump, with its 80 per cent drop contributing to the brand's 33 per cent overall decrease year-to-date, with 6585 cars delivered compared to 9794 at the end of last May.

With the Odyssey set to disappear from showrooms, Honda's line-up will soon be reduced to just four models, although the new HR-V with its hybrid variant and the upcoming, next-generation CR-V could provide Honda the long-term boost it wants over the next few years.

Honda Australia sales over an 18-month period