Honda has entered a new era in Australia with a compacted network of 90 dealers, a ‘one price promise’ that delivers fixed prices nationally, and industry-leading service costs, key pillars of its new agency business model.
Indeed, the brand’s new Price Promise will see consumers pay the same drive-away price for their new Honda vehicle across Australia.
However, as reported by carsales last month, Honda buyers will pay more and have access to fewer models under the Honda Price Promise.
Base prices are up across the line-up following the inclusion of on-road costs and the deletion of some base variants.
For example, the Honda Civic hatch range now comprises just three variants – down from six – with the VTi-S opening the range at $31,000 drive-away.
From today, every new Honda vehicle will be sold with a five-year unlimited kilometre warranty and five years of premium roadside assistance as standard, while service costs have been reduced to just $125 for each of the first five standard scheduled service intervals.
But as part of the change, the Honda dealer network has been reduced nationally, including a high-profile site in Melbourne’s inner suburb of Collingwood.
The introduction of the agency model and compacted dealer network will see the brand aspire to sell just 20,000 vehicles a year – prioritising customer experience over sales volume.
In a statement, Stephen Collins, Director at Honda Australia said the new agency model is positioned to deliver better outcomes for Honda shoppers and owners.
“We embarked on a transformation journey over 15 months ago to create an enhanced, consistent and premium Honda brand experience for our customers and Honda representatives. Today marks an exciting new chapter for Honda Australia, as we officially introduce our new business model to the Australian market,” said Collins.
“Many businesses outside of automotive have already realised an end-to-end customer experience that is simple, trusted and enjoyable, is the key to future success. Brand experience is the new competitive battleground, which is why we have shifted our focus from the auto industry norm of chasing volume to prioritising a quality customer experience.”
According to VFACTS, Honda sales were down 28% in May 2021 compared to previous month in 2020, and are down 25% year to date.
The brand’s mid-size CR-V SUV was its top seller in May realising 577 sales, followed by the HR-V small SUV with 571 sales.
May also saw just 132 sales of the Civic hatch and sedan, down 74% year-on-year, as details emerge about a next-generation hatch and sedan.
Further reading
VW CPO program drives more sales opportunities for dealers
VFACTS May: Toyota, Mazda, Kia, and MG surge
