Honda Pricing Changes: Some Winners, One Loser
Honda Australia announces pricing changes to several entry-level models to win sales, but one model is set to carry the burden.
Annual sales in 2023 were underwhelming with Honda Australia setting a new record low of 13,734 units sold. A value well under the projected 20,000 unit goal set in 2021. With the new car buying market cooling off, Honda is set to attempt bringing buyers back by reducing the cost of entry-level trim versions of the HR-V, ZR-V, and CR-V.
During the pandemic in early 2020, the auto industry faced challenges with production delays related to component availability and general logistical nightmares to deal with. Although they were facing some real problems, sales at the time were the opposite of a bad problem. People were buying up cars everywhere with costs soaring in both the used and new market spaces. Limited inventory kept dealerships with empty lots but had a steady stream of customers ready to go when anything became available, at almost any cost.
Today we are settling into post pandemic times with improved inventory and a different economic environment, making it now a buyers market – depending on what they are looking for. In an effort to offset this change, a plan is in place for reducing the costs of several entry level models with hopes that the lower buy-in cost for the brand will ensure that people are getting into new vehicles sooner and possibly becoming life long Honda drivers.
Models & Trim Level Changes (Australian Dollar Value shown):
2024 Honda HRV
- Vi X (-$1800)
- e:HEV L (-$3100)
2024 Honda ZR-V
- VTi X (-$700)
- VTi L (-$700)
2024 Honda CRV
- VTi X (-$600)
But, with a winning strategy there are sometimes a loser. Unfortunately, if you are interested in a new Honda Civic Type R (CTR), you will be experiencing a price increase of $1000 AUD instead. This adds insult to injury to those in the consistently scorching hot market for the new FL5 platform, where an increased MSRP amount versus the previous FK8 platform is already present, and dealership mark-ups or “market adjustments” are a regular occurrence. One could describe the purchasing process of a new CTR as “painful”.
Often times, the purchasing process of a CTR are these three challenges. First, the color options available will depend on the allocation your local dealership gets from Honda. You may get lucky and they will be on the list for the exact one you want. If not, your next best bet may be to travel far and wide to obtain the color of your choice and maybe save money in the process (if the dealership will even sell it to you). The second challenge is navigating the dealership installed accessories that may be conveniently already installed or chosen for you. Finally, the third being the sometimes non-negotiable “market adjustments” that are arbitrarily determined. Making the end price MSRP + Accessories + Market Adjustment before tax, title, and fees.
While a price increase due to new features/updates can be well justified – making the buyers of the new FL5 carry the burden for the rest of the pack seems unfair, since they’re likely the life-long Honda owners from yester year.
Photos: Honda