Honda plans hybrid expansion in 2024 to tackle Toyota, bringing EVs as soon as 2026 to tackle Tesla

May 7, 2024June 5, 2024 Toby Hagon 11940 Views Honda

Honda will fast-track EVs to market as it responds to booming demand in the electric car space and intensifying competition.

The news comes as the Japanese brand also confirmed plans to introduce more hybrid models across its existing line-up in response to increasing customer preference for petrol-electric vehicles.

Speaking at the launch of the eleventh generation Accord – which is being offered only with a hybrid drivetrain – Honda Australia director Carolyn McMahon confirmed the first Honda EVs would begin arriving sooner than the 2028 timeframe that had previously been reported.

“It will be earlier than that,” said McMahon of the 2028 date, hinting that a Honda EV could arrive as soon as 2026, a year after the proposed introduction of fuel efficiency standards.

“I can’t tell you exactly at this point because we are still firming that up. But in the background we are walking really hard on Honda’s movement into introducing battery electric into the Australian market.”

As with all Japanese brands Honda has been sluggish to market with EVs, instead focussing on hybrids. And whereas most Japanese rivals have offered or are currently offering an EV, Honda has never sold one in Australia.

And it’s not clear which of the 30 Honda EVs promised by 2030 would be on the hit list for Australia.

An obvious option is the new 0-Series range that has been previewed as futuristic-looking concepts. They will start launching in 2026.

The 0-Series Saloon and Space-Hub look fairly radical, which could be an indication of the thinking of the brand.

Honda also has a family of models named Yeh headlined by a GT (pictured top) planned to be sold in China, although the focus with those is likely to be China.

Honda also recently entered into an alliance with Nissan to collaborate on EVs.

For now, though, the emphasis is on hybrids and Honda is planning on stepping up its presence in the growing hybrid market.

Last year sales of regular hybrids (excluding plug-in hybrids) accounted for 8.1 per cent of the new car market, just ahead of battery electric vehicles with 7.2 per cent of sales.

In the first four months of 2024 hybrids have surged to 12.9 per cent of the market – predominantly off the back of additional supply from Toyota – while EV sales have inched up to 7.9 per cent of the market.

“We have good take-up of hybrid and you will start to see an expansion of that later in this year … more affordable hybrids are on the way,” said McMahon without outlining which models would be first to see

Currently Honda only offers a single hybrid model across its main lines, including HR-V, ZR-V, CR-V and Civic.

Apart from the Civic they are the most expensive models in each line-up. Despite that, Honda says hybrids already account for 40 per cent of its Australian sales.

The updated HR-V compact SUV is likely to be the first Honda to have a cheaper hybrid model, as it is due a facelift in 2024.

“Essentially now we have launched everything [as a] top variant, you will now start to see through different NMCs (new model changeover) or different upgrades … that expanded down throughout the range.”

That will instantly make Honda hybrids more affordable and allow them to better compete with market leader Toyota, which has traditionally accounted for about 90 per cent of petrol-electric sales.