Honda to Expand Hybrid Range, Introducing More Affordable Models

Honda Australia is gearing up to expand its hybrid vehicle range, aiming to introduce more affordable petrol-electric grades of its key models. This move comes as the company seeks to make hybrid technology more accessible to a broader range of customers.

Currently, Honda offers hybrid variants of its five models, including the HR-V, ZR-V, and CR-V SUVs, as well as the Civic hatch and Accord sedan. However, these hybrid grades primarily serve as flagship options, commanding higher prices that may be out of reach for some buyers. For instance, the CR-V RS e:HEV hybrid is priced at $59,900 drive-away, significantly above the starting price of the petrol CR-V.

Carolyn McMahon, Honda Australia Director, disclosed plans to expand hybrid grades during the launch event of the 11th-gen Accord in Melbourne. She hinted that the rollout of more affordable hybrid models is likely to coincide with mid-life or model year updates across the range.

While McMahon did not specify which model would be the first to receive additional hybrid grades, industry insiders anticipate that the HR-V small SUV could lead the charge. A recent update to the HR-V in the Japanese market suggests that this model could be next in line for hybrid expansion.

Despite the premium pricing of current hybrid offerings, Honda has witnessed a higher-than-expected uptake of hybrid models, with hybrid sales accounting for approximately 40% of total sales. This exceeds the company's initial goal of 25%, indicating a growing demand for hybrid technology among Australian consumers.

The upcoming expansion of hybrid grades is anticipated to focus primarily on the SUV lineup, rather than passenger models. While the new-gen Accord will be available exclusively as a hybrid, the Civic offers both petrol and hybrid variants, alongside the performance-oriented Type R hot hatch.

Honda's decision to concentrate on hybrid SUVs aligns with market trends, as evidenced by the popularity of hybrid options from competitors like Toyota and Hyundai. Models such as the Hyundai Kona, Subaru Crosstrek, and Toyota Corolla Cross offer more affordable hybrid grades, presenting stiff competition in the SUV segment.

Despite the push towards hybridization, Honda currently has no plans to transition other models beyond the Accord to hybrid-only offerings. However, the company remains attentive to evolving consumer preferences and regulatory changes, such as the proposed New Vehicle Efficiency Standard (NVES), which could influence future strategies.

While specific pricing details for the new hybrid grades remain undisclosed, Honda assures that they will be competitive within the market. This move underscores Honda's commitment to providing environmentally friendly vehicles while remaining adaptable to changing industry dynamics.

As Honda prepares to expand its hybrid range, consumers can anticipate a broader selection of affordable hybrid options, catering to diverse needs and preferences in the Australian automotive market.