Honda Australia has recently announced that they are taking a hybrid-first approach when it comes to rolling out electric vehicles, putting off the introduction of electric vehicles for at least five years, or by 2028 at the earliest. This means that Honda Australia could be the last mass-market car manufacturer to introduce an electric vehicle in Australia, lagging behind companies such as Tesla, Mitsubishi, Toyota, Mazda, Subaru and Volkswagen.
Honda is planning on introducing 30 electric vehicles by 2030, including a ute and two sports cars, before going electric-only globally. While electric Honda vehicles are already available in Europe and a range of battery-powered models are coming to the US and China in the next few years, Australia appears set to miss out on these vehicles for now.
Carolyn McMahon, Honda Australia's boss, stated that they “think hybrid is the right strategy at this point in time,” and “we don’t have any plans at the moment to introduce [electric vehicles].” When asked if Honda thinks it’s not important to offer an electric car, Ms. McMahon said that their “strategy at the moment is hybrid for us right now.”
She clarified that when she says the “medium term” she is “talking five years” and that Honda is “continuously monitoring the market, what vehicles might be available to us, what’s shifting in the market… [and] open to what changes happen and opportunities [for electric cars] that [may arise].”
The executive also noted that Honda’s plan does not depend on the federal government leadership in 2022 and tougher emissions standards for petrol cars. She said that “hybrid for us is a bridge to electrification” and that “Honda will eventually get to [electric vehicles].”
Ms. McMahon also said that the availability of suitable electric cars in a popular segment of the market, as well as the availability of right-hand drive vehicles at an affordable price point, have been barriers to Honda’s electric vehicle roll-out.
In conclusion, Honda Australia is taking a hybrid-first approach when it comes to rolling out electric vehicles, with no plans to introduce electric vehicles in the near future. The company is, however, continuously monitoring market trends and developments and is open to taking advantage of any opportunities that arise in the future.