3 days ago
Japanese giant says Aussies aren't ready for EV
Honda Australia is going all-in on hybrids, revealing a plan to win back Australian drivers with a line-up that leans heavily on electrified petrol engines – not full battery electric vehicles (BEVs).
Newly appointed Honda Australia President and chief executive Jay Joseph said the brand has significant room to grow and is focused on serving more customers with an expanded range.
'We know we can do better in terms of the number of customers we serve every year than we do today,' he said.
'I don't want to draw out a number or position, but we see significant opportunity for improvement by adding to our product line.'
As other car makers scramble to rework line-ups in response to Australia's New Vehicle Efficiency Standards (NVES), a new emissions policy that will penalise high-polluting models, Honda says its electrification strategy has not been shaped by government pressure, but by what customers want.
By early 2026, facelifted versions of the CR-V and ZR-V SUVs will hit showrooms, with seven new hybrid variants, including Honda's first all-wheel-drive hybrid and a plug-in hybrid CR-V with up to 80km of electric range currently under study.
After years of declining sales and a shift to fixed pricing, Honda says its hybrid-first strategy is the key to restoring relevance and lifting its position.
Currently ranked 19th in Australia, Honda sold just 14,092 vehicles last year and is down a further 7.3 per cent in 2025.
At its peak in 2007, the Japanese brand sold more than 60,000 cars annually.
In June 2025, hybrid models made up 50 per cent of Honda's Australian sales, a figure it's hoping will rise to 95 per cent by the end of 2026.
The Japanese brand will also add its first battery electric vehicle (BEV) in the second half of 2026.
While the model has not been named, the e: N1, already sold in New Zealand and Europe, is a likely contender.
Built in Thailand and delivering 412km of WLTP-tested range, the electric SUV would rival the Kia EV3, BYD Atto 3 and Nissan Leaf.
Also joining the line-up will be the Civic Type R, which has avoided being cut in Australia despite being discontinued overseas due to emission rules.
'We're in a good position to execute what we're talking about today,' Joseph said.
Honda Australia director of automotive Robert Thorp added that 'everything is on the table' in reference to vehicles sold overseas, but said the global remains volatile: 'The instability of the international market, particularly in relation to tariffs imposed by the US government on other countries, meant they had to pick models carefully.'
Perhaps the most exciting news is the return of the iconic Honda Prelude, returning as a hybrid-only coupe in mid-2026.
