Honda Australia not worried about Chinese competition

Honda Australiasays it has what it takes to compete with the growing number of Chinese brands in our market, as it looks to rebuild after several tough sales years. 

While Honda is pitched – and priced – as a more premium brand than many Japanese rivals, it’s facing increased competition from new brands from China. 

Chinese automakers are aiming ever higher, expanding beyond the cheap and cheerful offerings they’re known for to more premium products – witness the introduction of Geely’s Zeekr marque, MG offering products from the IM Motors premium brand, GWM offering pricier Tank SUVs, and BYD readying its more luxurious Denza offshoot for Australia.

But while Chinese brands are aiming upmarket, Honda Australia says it will focus on its plan regardless of who enters the local scene, with managing director Rob Thorp confident the automaker is on track for growth in Australia.

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“It’s a competitive landscape – so whether it is the Chinese competitors, or the Koreans or the Germans – or whatever it may be, that just becomes the competitive landscape we have to deal with,” Mr Thorp told CarExpert.

“It’s a free market, they’ve got the right opportunity to compete here, it is what it is.

“I think for us, we’re very clear on our proposition in the markets and what our competitive strengths are. I think the challenge we have is to ensure that enough consumers know that.”

What are those strengths the Honda boss believes will hold the brand in good shape in Australia over the next decade?

“I think of it from the quality of the product that you see, the quality of the customer care and service you receive, the longevity of the models and the relationship we have with you during the ownership period,” he explained. 

“So we’re very comfortable we’ve got the ingredients to be successful in this market – but they’re competitors, whatever and wherever they come from – that’s just the environment we have to work in.”

The Japanese brand is expanding its hybrid lineup, which will include the introduction of the hybrid-powered Prelude sports car here next year, and plans to launch its first electric vehicle (EV) before the end of 2026, too.

It has, however, ruled out bringing its luxury brand sold overseas, Acura, to local showrooms.

Honda posted its lowest sales on record in this country in 2022 and 2023, following the move to a fixed-price agency model, a reduction in the number of dealers in its network, and the discontinuation of more affordable products like the Jazz.

The number of brands in Australia has continue to increase, making our market – already saturated given the number of brands competing for sales of only 1.2 million vehicles each year – even more cut-throat.

It led chief operating officer of Chery-owned Omoda Jaecoo, Roy Muñoz, to recently declare more brands benefited new-car buyers and only improved showroom offerings through an ultra-competitive climate. 

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