Honda has announced a strategic shift, asserting that it no longer identifies as a “volume brand.” Instead, the company is focusing on growth in Australia, particularly through its CR-V model, which it believes has the potential to surpass the Toyota RAV4 in sales. This statement marks a significant change in direction for the Japanese automaker, which has seen its local sales fluctuate in recent years.
In the first seven months of 2025, Honda is on track to sell over 15,000 vehicles, aiming for its best performance since implementing a controversial agency sales model in mid-2021. This model shifted vehicle ownership to Honda and introduced fixed drive-away pricing, but it also lowered annual sales forecasts to around 18,000 vehicles. Despite these challenges, Honda has not yet met this adjusted target. Historically, Honda sold more than 40,000 vehicles annually prior to the COVID-19 pandemic, peaking at over 60,000 sales in 2007.
Under the leadership of CEO Jay Joseph and Managing Director Rob Thorp, who both assumed their roles in April 2025, Honda is committed to maintaining its niche market positioning. “We’ve earned this niche of not just being a mainstream brand that’s just selling volume on price,” Joseph stated during an interview. He emphasized the importance of the brand’s inherent qualities and customer service in defining its value proposition, rather than solely focusing on sales volume.
Honda’s leadership has outlined a vision for “aggressive” sales growth, although the company has refrained from publicly declaring specific sales targets. Thorp mentioned, “We think we’ve got a current product portfolio, plus a range of models that we’re able to bring to market that’s going to give us the opportunity to extract more growth out of this brand.” The emphasis appears to be on executing high-quality products rather than competing purely on volume.
Currently, Honda Australia offers five models: the small Civic hatchback, the mid-size Accord sedan, and the HR-V small SUV, along with the ZR-V and CR-V mid-size SUVs. The company has laid out future plans that include expanding hybrid options for the CR-V, aiming to compete with the hybrid-only Toyota RAV4, which remains Australia’s top-selling model. Furthermore, Honda has confirmed the upcoming relaunch of the Honda Prelude sports car, featuring a hybrid powertrain, set for release in 2026.
While the leadership team is optimistic about the Honda 0 Series range of electric vehicles for Australia, they recognize that these models may not dominate sales figures. Instead, they are focusing on the hybrid-powered CR-V as their primary avenue for growth. Joseph asserted, “We know that the CR-V is the best vehicle in this segment,” highlighting its superior driving performance and value.
As of July 2025, the CR-V has achieved 3,592 sales, a decline of 11.2 percent year-on-year. In contrast, the RAV4 has recorded 28,449 sales during the same period, down 9.2 percent. Honda’s leadership believes that with adjustments in strategy and a focus on customer care, the CR-V can become the best-selling vehicle in its class. Joseph concluded, “If it’s the best vehicle in its segment, why wouldn’t it be the best-selling vehicle in that segment?”
With a renewed focus on quality and customer satisfaction, Honda is poised to navigate the competitive automotive landscape in Australia, setting the stage for potential sales growth in the coming years.
