Honda holds back on EVs, favours hybrid strategy

HONDA AUSTRALIA sees no need to introduce an all-electric offering within the next half-decade, with the company confident that its renewed petrol-electric hybrid push is the best pathway for the medium-term.

“I wouldn’t say it’s not important for us to get an electric car, but I think our strategy at the moment is right for us,” said Honda Australia director Carolyn McMahon.

“When we take a look at the Australian readiness, or the Australian market’s ability to cope with [EVs], we don’t think it’s quite there. The other critical point is our regional and rural Australian market, and for us right now, we think hybrid is right.”

Ms McMahon outlined that the company aims to offer at least one hybridised variant of every model line in the near future, with the CR-V – which is due for a full model changeover – currently the only nameplate to not offer a hybrid derivative in Australia.

The ZR-V small SUV will also squeeze in between the mid-sized CR-V and light HR-V when it arrives in the middle of this year, and a hybrid alternative to the conventional 1.5-litre turbo petrol powertrain is already confirmed for that model. As to whether it will be offered from launch has yet to be made clear.

Ms McMahon also wouldn’t be drawn on when the new-generation CR-V – which was revealed in mid-2022 and is already on sale in the USA – will reach Australia, though its absence from the rest-of-2023 outlook that was given to media suggests it’s more likely to be a 2024 proposition for our market.

If so, that would leave Honda Australia without an electrified option in the commercially critical midsize SUV segment at a time when rivals are rolling out hybrid and fully electric options with increasing frequency.

Toyota currently reports significant demand for its RAV4 hybrid variants, Nissan recently launched its X-Trail e-Power, and Mitsubishi’s Outlander PHEV and Ford’s Escape PHEV both arrived last year, adding to existing hybrid SUVs offered by Haval, MG and Subaru.

However, in year-to-date figures, overall hybrid uptake has declined by 17.2 percent while plug-in hybrid (PHEV) sales have risen by 49.8 percent. Meanwhile, deliveries of battery-electric vehicles, boosted largely by the arrival of newcomers like BYD’s Atto 3 and Tesla’s Model 3 and Model Y, have exploded by 783.9 percent.

The numbers suggest that PHEVs and pure EVs are where buyers are heading, but with Honda’s local arm ruling out EVs for now – and no PHEV product available for the Australian market as yet – the company may end up behind the eight ball towards the end of the decade when it comes to having the right products for its customers.

But right now, the company’s “No EVs” stance is easy to understand.

The only all-electric Honda product globally is the diminutive Honda e (pictured), which is sized smaller than the previous-generation Honda Jazz light hatch, is powered by a 113kW motor and 35.5kWh lithium-ion battery pack, and only offers a WLTP range of 220km.

It is a far cry from the Tesla Model 3 or BYD Atto 3 fighter the brand actually needs…

Looking further into the future, there will be more battery-electrics for Honda Australia’s product planners to choose from, and that will likely drive a rethink on powertrain mixes locally.

Honda’s global leadership pledged late last year to spend ¥‎5 trillion (AU$56b) over the next decade on “electrification and software technologies”, with a goal of launching 30 EV models globally by 2030, with total EV production of two million units.

Among those will be a light commercial van, passenger cars, a pair of performance cars and a bevy of SUVs. Some will be exclusive to regions like China and the USA, but others, particularly those earmarked for Japan, will likely be of interest to Honda’s local office.

“It’s not to say that Honda (Australia) won’t be looking at electric vehicles in the future. You may have read about Honda’s global commitment to investing $55 billion Aussie dollars into electrification technology… so I’m really really excited and confident that in the longer term we’ll have models here for Australia,” continued Ms McMahon.

“But in the medium-term, we think we’ve got it right with hybrid. We’re talking the next five years. But having said that, we’re continually monitoring the market, we’re continually monitoring what vehicles might be available to us.”