Honda says more hybrids coming

HONDA Australia has confirmed it intends to offer more affordable versions of its e:HEV petrol-electric hybrid models in the coming years.

The brand currently only sells high-grade, range-topping e:HEV LX variants in its HR-V, Civic and just-launched Honda ZR-V models, but it is understood that the Japanese car-maker wants to offer more customers the choice of an alternative powertrain at a lower price point.

Honda Australia director, Carolyn McMahon, confirmed that the company is moving to offer the e:HEV option in other grades as time goes on, but declined to comment on when customers can expect more affordable petrol-electric variants to arrive.

“We started the expansion of hybrids from Civic Hybrid and then HR-V, and now Honda ZR-V. And our hybrid strategy is all about introducing hybrid with each new full model launch,” said Ms McMahon.

“Once we've done that, then the next step is then to introduce more variants within each model – so with Honda ZR-V, and of course then with CR-V, there will be a hybrid top-grade spec in those models.

“And then as we move through the lifecycle, you'll see more variants coming in,” she said. 

Honda Australia general manager of customer experience, Belinda Cusworth, said the new Honda ZR-V e:HEV LX grade in particular has seen significant interest.

“It’s well over 1000 to date,” Ms Cusworth said when asked about how many ZR-V orders have already been placed.

“The hybrid has been really strong, too. It’s pretty significant, and we’re looking to grow that over the next three to five years. It’s part of our long-term strategy.

“We haven’t committed to the model variants at this point in time, but it’s more ensuring we’ve got the volume to meet demand,” she said. 

Honda Australia senior product planner Arjun Nidigallu, told GoAuto that representatives from the company’s sales centres have stated that customers in the medium SUV market are crying out for more hybrid models.

“Our mid-term plan is to expand, but where we expand and how we expand is going to be dictated by the market,” he said.

“It’s not so much up to us, as much as customers saying, ‘this is what we expect with a hybrid’.

“I say the first three questions are the best indicator. So the first three questions someone asks, when asking ‘is that the new car for me?’, those are the ones that matter most,” he said. 

“Typically at the moment, it's: ‘Does it come in hybrid?’, ‘What's the fuel efficiency like?’, ‘What kind of engine power do we have?’. Those are the typical top three questions. And so a lot of our decisions are based around that customer outlook.

“So we spend all day talking about, you know, what we can do from an R&D perspective and then line up … but at the end of the day the customer needs to feel like it's the right path for them,” said Mr Nidigallu.

At this point in time, Honda is only really catering to hybrid buyers who are willing and able to spend over the market expectation for hybrid options from a mainstream brand.

For instance, the new Honda ZR-V’s top-spec e:HEV LX is priced at $54,900 drive-away, representing a $6400 jump over the almost-equivalent VTi LX petrol-turbo version. That is much more than what Toyota asks for a RAV4 hybrid model, for instance (starting from $40,550 before on-road costs).

Likewise, the Honda Civic e:HEV LX, at $55,000 drive-away, is significantly more than even the most expensive Toyota Corolla ZR hybrid hatchback ($38,120 + ORC) or sedan ($39,620 + ORC).

And further, the HR-V e:HEV LX is a $47,000 drive-away proposition, which makes it considerably more expensive than a Toyota Corolla Cross hybrid (from $35,500 to $49,050 + ORC), GWM Haval Jolion hybrid (from $36,990 to $40,990 drive-away), Hyundai Kona hybrid (from $36,000 to $46,500 + ORC), or Kia Niro hybrid (from $44,930 to $50,580 + ORC).

Honda’s push for more hybrid models comes at a questionable time, as our recent Market Insight shows that battery electric vehicle sales have overtaken hybrid models in Australia so far this year.