Honda to overtake Mazda via new models

HONDA is aiming to sell 80,000 vehicles in Australia annually by 2010 (up from just 30,817 sales in 2003, 54,202 units last year and a forecast of 60,000 in 2007) by releasing a host of new models between now and the end of this decade - including redesigned versions of the Jazz light hatch, Accord and Accord Euro mid-sized sedans and the Civic hatchback.

A greater focus on customer service and a 20 per cent increase in dealer numbers to back this up is also in the works.

Selling 80,000 vehicles would see Honda overtake Mazda for the number four spot behind Toyota, Holden and Ford in the Australian new vehicle sales rankings.

Honda Australia general manager and CEO Toshio Iwamoto told GoAuto that the American Honda model has been applied to underpin the Japanese brand’s growth plans in Australia.

In the US, Honda and its luxury brand Acura combined sold over 1.5 million vehicles during 2006, representing a 3.5 per cent increase, and the 10th consecutive year of growth.

"We will gradually increase volume incrementally," Mr Iwamoto said.

Mr Iwamoto explained that Honda Australia is now completely focused on improving customer satisfaction, because this is the area where American Honda has worked hardest to achieve its volume growth over the last decade.

"We have to make the dealers really focus on the customer," he said. "Dealer by dealer, salesperson by salesperson. There are some dealers who focus only on money. We have to change their minds.

"The total market share pie is limited in size... so this is the best way of convincing buyers to choose and with Honda." Increasing dealer numbers from 97 today to 125 in the next five years is another plan, as Honda Australia attempts to close "open points" in rural areas where dealer access for customers has been difficult.

Enlarging and/or upgrading Honda’s metropolitan dealer operations are also underway, to help cope with the expected increased volume as a result of the new-model activity over the next four years.

This has already begun in the form of the third-generation CR-V released this month. Last year Honda sold around 840 per month – this year it wants to increase this to 1000.

Next year will be a big one, with no less than three core Honda products coming in for renewal.

2008 Jazz II petrol and hybrid

First cab off the rank will be the second-generation Jazz/Fit light car. A gentle evolution of today’s highly successful model, Honda has already confirmed it will not grow substantially beyond today’s compact yet spacious hatchback.

Sedan and mini-MPV versions are also thought to be in development, although only the former might land on Australia’s shores.

GoAuto understands Honda is considering dropping the base model GLi’s 61kW 1.3-litre engine for a revised version of the VTi’s 81kW 1.5-litre unit in all variants, bringing the Jazz in line with the next-generation Mazda2 (due this year) and Suzuki Swift.

A Jazz II Hybrid is also said to be in development, employing an update of the 1.0-litre three-cylinder IMA petrol/electric drivetrain found in the Insight, the two-seater three-door coupe-like hybrid that Honda brought to Australia in tiny numbers between 2001 and 2004.

Expect the Jazz II to debut in Japan as early as this October, following a Tokyo motor show unveiling, with Australian sales to follow sometime in the second half of 2008. Look to Honda's 2006 WOW Concept as a pointer to the next Jazz’s styling.

2008 Accord and Accord Euro

This year’s Tokyo motor show may also be the setting for the next Accord Euro, expected to precede the larger "American" Accord’s January 2008 Detroit show debut by two months.

Mr Iwamoto has already confirmed the successful two-pronged Accord strategy will continue here and in New Zealand. As is the case now, these cars will be separate in their size, appearance and price, and will be released several months apart from each other.



Left: Civic hatch and Accord coupe concept.

Details are sketchy, but GoAuto understands the Euro will have very similar styling to Honda’s 2005 Tokyo motor show car, the Sports 4 Concept, along with a larger 2.5-litre four-cylinder engine.

Critically, both will arrive hot on the heels of the all-new Mazda6, which is regarded as the Euro’s closest competitor in size and performance, while the bigger Accord will face off Ford’s vital new Falcon, along with the Toyota Aurion, Holden Commodore and Mitsubishi 380.

2009-10 Civic Hatchback

While Mr Iwamoto indicated that Honda may be developing a low-cost five-door hatchback of a different design to the smaller, Jazz-based UK Civic hatchback sold in Europe, it is unclear whether it will be based on the current Civic sedan launched early last year, or whether it will form the basis of the 2011 ninth-generation Civic under development.

Either way, such a program is in development fast-track, since the critical acclaim and subsequent high demand of the British-built Civic hatchback has led to a number of markets demanding it.

It is also almost certain that Honda will not repeat the mistake of creating a Civic hatchback that can only be built in England, since that is also where the majority of its parts suppliers are located.

As it stands, Honda Australia believes it is already missing out on at least 10,000 small-car sales every year.

"We are missing the Civic five-door. Fifty per cent of the small car segment is the five-door hatch, and we are missing the product," Mr Iwamoto said. "We have to get the Civic five-door.

"At this moment the five-door model is only built in the UK. When the model changes, there is no reason why Honda Japan cannot once again build the (next) five-door for the ASEAN (Association of South East Asian Nations).

"If we succeed in getting a five-door hatchback – either from Japan or Thailand – we can easily match the volume of the Civic Sedan, which would be about 15,000 a year. That sort of volume we really need," he said.

2009 S2000 II

Contrary to reports published elsewhere, Honda is likely to reveal an affordable sportscar within the next two years.

Aimed straight at the Mazda MX-5, the second-generation S2000 will abandon its expensive build and material processes, for a newly developed modular platform that might also underpin the next-generation, front-engined Acura NSX AWD V10.

Speculation in Japan indicates that the S2000 replacement will be developed in the mould of the 1960s S600 convertible, which means – like the current S2000 – it will espouse a front-engine/rear-drive layout.

The body is expected to feature a retractable hard-top rather than the soft-top of today’s car, while a 2.0-litre engine delivering up to 160kW of power is being mooted, along with Honda’s new i-Shift clutchless six-speed automated gearbox.

Do not be surprised if a concept car matching this description is displayed at the Tokyo motor show in October.

Diesels

In 2009, Honda is expected to unveil its second-generation, Tier-2 BIN-5 US-emissions rated, turbo-diesel models in Australia. Due to arrive in the next Accord and new CR-V, these will also include an all-important automatic gearbox option.

According to Mr Iwamoto, to some degree the price, spread and availability of diesel-engined Hondas in Australia hinges on how well US buyers accept them, since the Americans also start receiving oil-burning Hondas from 2009.

"The American market is huge, so if Honda can make more diesels for America, the cost of the engines will come down," he said.

The current European-market diesel is Honda’s first foray into this engine technology, and – surprisingly for a Japanese-based company – was not developed to use an automatic transmission when released in Europe during 2003.

Prius competitor

Later in 2009, Honda should have its third hybrid model on sale in Australia, after the Civic Hybrid sedan and Jazz Hybrid.

Like the Prius, this vehicle will be a bespoke design focused on making the most from the packaging and drivetrain opportunities petrol-electric hybrid vehicles present, and is likely to be based on the edgy Honda Compact Hybrid Coupe concepts revealed at Geneva in March.

However, unlike the 2001 Insight – which was the first hybrid to be commercially sold in Australia, beating the Prius by six months – Honda claims its dedicated hybrid vehicle will be very affordable and practical, as well as good to drive.

What's coming from Honda:
CR-V III	Feb 2007
Jazz II	First half 2008
Accord Euro	First half 2008
‘Big’ Accord	Second half 2008
Civic hatchback	2009
S2000 II	2009
New Insight: Prius-style bespoke Honda Hybrid	2009
Gen II Honda Diesel – Accord, CR-V, Civic	2009

Read more:

First drive: Honda puts a better spin on CR-V

CR-V drive impressions

Next generation S2000 – Look out, MX-5!

Confirmed: Civic Type-R three months away!