Honda Australia has reported its most successful monthly sales since June, largely driven by the impressive performance of its ZR-V crossover SUV. The brand’s sales surged by 139.3% compared to November last year, a significant rebound from a challenging period in 2024. The ZR-V alone saw a remarkable 266.9% increase, with 433 units sold. Meanwhile, the CR-V and Civic models also posted substantial gains, highlighting a robust recovery for the Japanese automaker.
In the first 11 months of 2025, Honda Australia has already surpassed its total sales for the entire 2024 calendar year, delivering 14,194 vehicles compared to 14,092 last year. If December sales align with the current monthly average of 1,290 units, Honda could achieve 15,484 sales for the year, marking its best performance since 2021. However, this figure remains a stark contrast to the brand’s peak years when it consistently sold over 40,000 vehicles annually in Australia.
Strategic Shifts and Market Dynamics
The impressive sales figures come as Honda Australia navigates a strategic “building phase” under the leadership of CEO Jay Joseph, who assumed the role in April. Joseph, a veteran with 27 years at Honda US, anticipated the brand would reach approximately 15,000 sales this year. This optimistic outlook is buoyed by Honda’s 9.1% growth year-to-date, outperforming other Japanese brands like Lexus, which posted an 8.0% increase.
Conversely, several key Japanese competitors have faced declines, with Suzuki experiencing a 27.4% drop, followed by Nissan at 18.7%, and Mitsubishi at 17.5%. Even industry leader Toyota, which has dominated the Australian market since 2003, saw a slight decrease of 0.6%.
Model Performance and Customer Reception
November marked a standout month for the ZR-V, which nearly matched its peak sales of 540 units in March 2024. Year-to-date, the ZR-V has achieved 3,588 sales, overtaking the larger CR-V as Honda’s top seller for the month. However, the CR-V remains the brand’s leading model year-to-date with 5,210 sales, a 2.4% increase.
The HR-V also performed well, securing 352 sales in November, contributing to a year-to-date total of 4,451 units, a 44% increase from the previous year. This growth underscores Honda’s successful adaptation to market demands and consumer preferences.
Transformation and Future Prospects
Honda Australia’s transition to an agency sales model in 2021, despite initial controversy and legal challenges, has played a crucial role in its recent success. This model, characterized by set pricing and the elimination of customer haggling, has been well-received. According to Honda Australia Managing Director Rob Thorp, customer feedback has been overwhelmingly positive, appreciating the transparent and straightforward buying process.
As part of its 2025 strategy, Honda introduced free servicing and reduced prices for its SUV lineup, following the expiration of its eight-year extended warranty offer. Looking ahead, Honda plans to expand its model range with the introduction of the all-new Honda Prelude sports car in mid-2026, and the Super-One electric vehicle, marking its first EV offering in Australia.
“Currently, we’re building our business there, so we’re in a building phase,” said CEO Jay Joseph. “We’re poised to be in a much stronger position, and we’re beginning to grow that share back.”
Challenges and Opportunities
Despite the positive trajectory, Honda Australia faces ongoing challenges. The company has ruled out the return of its Odyssey people mover and remains uncertain about the future of the Accord and Civic models in the local market. These decisions reflect a broader industry trend towards SUVs and electric vehicles, which Honda is keen to capitalize on.
Updated versions of the ZR-V and CR-V, featuring new hybrid powertrains, are slated for release in 2026, aligning with Honda’s commitment to sustainability and innovation. As the automotive landscape evolves, Honda Australia’s strategic adjustments and product innovations will be critical in maintaining its upward momentum.
In conclusion, Honda Australia’s recent sales surge represents a significant rebound and a testament to its strategic initiatives. As the brand continues to adapt and innovate, it remains well-positioned to navigate the challenges and opportunities of the dynamic automotive industry.
