Up to 20 months wait for Honda Civic Type R

EXACERBATING Honda Australia’s plummeting sales is news that delivery delays of up to 20 months will apply to some in-demand models

The bad news follows Honda Australia’s implementation of a plan to sell fewer cars for more profit using an ‘agency model’ that appears to have backfired with deliveries declining nearly 20 per cent year on year from 2021 to 2022, missing the company’s stated goal of shifting 20,000 units a year.

Having sold 17,562 cars in Australia in 2021 for a 1.7 per cent market share followed by 14,215 units in 2022 for a 1.3 per cent market share, the Japanese car-maker has fallen a long way from the near 6.0 per cent slice of the pie it had in 2007.

Honda Australia kicked off its version of an agency model in July 2021 under the guidance of then chief operating officer Stephen Collins, who resigned in early November 2022.

Among other things, the plan brought with it a rationalisation of dealerships along with fixed pricing and stock owned and controlled by the manufacturer. Dealers are paid a set fee for sales and delivery of new cars.

Like most other manufacturers, Honda Australia has suffered supply issues as a result of the pandemic, variously caused by availability constraints around semiconductors and other components, then compounded by shipping problems.

International reports suggest that this period is slowly resolving with, apart from economic concerns, an improving business environment in the automotive sector going into 2023.

In an effort to shore up its existing market share, Honda Australia has taken the step to ‘confirm’ delivery times on selected vehicle models and grades, with some in good supply and others delayed for a long time.

According to a statement from Honda Australia, non e-HEV (petrol) variants continue to be in stock with shorter wait times, the CR-V medium SUV in particular showing good stock levels.

Balanced against that are delayed delivery times for the HR-V e-HEV L hybrid small SUV, the Civic e-HEV LX hybrid small hatch and Civic Type R hot hatch.

The latter is due for local launch this month, albeit with extremely limited availability.

In the statement, Honda Australia says it “continues to monitor the situation closely, coming into the first half of 2023”.

The company says it is still grappling with production issues including supply chain and the global shortage of semiconductor parts but asserts the impact is happening throughout the automotive industry and may be evident across a range of other consumer goods and manufacturing sectors.

“Honda Australia is not immune to these external issues,” it insists.

Disappointing many prospective Honda buyers is news that the overall supply state of e-HEV electrified models and the all-new Civic Type R is “’tight”.

“Honda Australia can confirm that the electrified HR-V e-HEV L and new Civic e-HEV LX grades are experiencing delivery times of approximately nine months,” the company stated.

“Due to high demand for the extremely popular Civic Type R, some wait times for this model are expected to be up to 20 months, extending into 2024.”

Industry insiders say delivery delays of this magnitude dictate Honda will almost assuredly miss the market and lose more sales as buyers shop elsewhere. 

However, the company says it is continuously seeking to shorten these wait times and is “regularly monitoring the situation”.

In a footnote, Honda Australia says: “Wait times outlined are subject to January production and may change throughout the course of 2023.”

Plenty of Honda people would be hoping so.