Manufacturer: Honda

Total sales 2014: 3,560,000

Headquarters: Tokyo, Japan

Global market share: 5.0%

Importance of SUV sales

Honda reported consolidated unit sales of 3,513,000 vehicles in fiscal year 2015, a decrease of 0.5% from the previous year. This decline can be attributed in large part to a unit sales decline in the home market of Japan, where an increase in consumption tax rates in April 2014 led to falling sales across all brands. It is testament to the popularity of new key models such as the Grace and solid sales of the new Venzel (badged HR-V in Europe and the USA) that sales in the market did not decline further, and Venzel remained Japan’s best selling SUV with over 96,000 sold in 2014. Up to July 2015, Venzel had attracted over 140,000 Japanese customers, with 38,218 units sold in the first half of 2015 alone.

In the USA, Honda’s SUV sales also experienced strong growth in the first half of 2015, increasing by more than 10% over the same period in 2014. This growth culminated in June, following HR-V’s arrival in dealerships, with a record month for SUV sales, up 18% year-on-year. In its first full month on sale, HR-V posted sales of 7,760 units. Sales of the new TLX luxury sport sedan and upgraded ILX sedan boosted Acura family sales by 43.5% over May 2014, and Honda recorded a 17% sales surge for its second-generation Pilot ahead of the introduction of the 2016 model. The Fit (badged Jazz in other markets) posted its third consecutive month of over-6,000 unit sales for an 82% year-over-year increase over May 2014.

Concerns about airbag safety impacted Honda’s sales performance in Q1 2015, with 14.4m units built by Japanese supplier Takata Corp., being recalled, around 9.87m of which were from the USA. Honda’s European sales were also impacted in the period, with the brand citing unfavourable foreign exchange rates and a weakening model mix towards lower-margin vehicles. Due to falling sales, Honda UK confirmed that the European Accord sedan and Tourer estate will be removed from the range next year, with no replacement planned. Honda aims to use the momentum created by its busy European launch schedule in the second half of the year (which saw the all-new HR-V, Jazz, Civic Type R and refreshed Civic and CR-V ranges added to the line-up) to boost its European share. The all-new HR-V and Jazz are expected to contribute the biggest upswing in sales, with the current-generation Jazz estimated to account for 40% of Honda’s total UK sales, with as many as 80% of buyers being previous Jazz owners.

Recording monthly domestic sales of 18,606 units in July 2015, Honda Cars India achieved year-on-year growth of 18% over 2014 sales. The biggest contributors to this sales boost have been the new Honda Jazz (launched July 2015), City and Amaze. The Jazz replaced the City to become the top-selling Honda Car in July 2015, selling 6,676 units. Sales of the seven-seat Mobilio continued to dip however, recording just 909 units in the month. The second-generation mini-MPV launched to the South African, Indonesian and Indian markets in 2014.

Big plans for 2016 and beyond…

Honda Motor Europe plans to target annual sales of 200,000 units in 2016, helped by its refreshed model line-up, new models and a significant investment in its UK manufacturing base. Next year will bring the start of mass production of the new NSX hybrid supercar, followed by the tenth generation Civic from early 2017, with production of five-door variants exclusively at the carmaker’s plant in Swindon in the UK following latest investment of €270m (£198m) in new production technologies and processes.

Launched in Europe this September, the new HR-V is expected to contribute significantly to region sales, and incorporates a number of features unique to the territory. The ride and handling has been tuned for European roads, while new CVT control logics have been developed to meet European motorists’ expectations of automatic transmissions. The engine line-up includes a 120hp 1.6 litre i-DTEC diesel engine that is only available for Honda vehicles in Europe.

The Honda BR-V (Bold Runabout Vehicle) Prototype, which has been jointly developed for the Asian market by Honda R&D facilities in Thailand and Indonesia, will be introduced to the Indonesian market as Honda’s new generation crossover utility vehicle. The new BR-V offers seven seats in a three-row configuration and is powered by a 1.5L petrol engine. Expected in early 2016, Honda has no plans to bring the BR-V to global territories, having designed it specifically to appeal to Asian markets to help fill the sales vacuum created by the slow-selling Mobilio MPV.

Also expected in early 2016, Honda’s production fuel cell vehicle joined the carmaker’s ‘The Power of Dreams’ line-up at the 2015 Frankfurt Motor Show. Provisionally called the FCV, the vehicle is billed as the world’s first production model of a fuel cell powered sedan to house the entire fuel cell powertrain in the space normally occupied by the engine and transmission. No technical details were revealed, but Honda clams the model brings a cruising range of more than 700km. The FCV will debut in Japan in March 2016, and is expected to launch in the USA shortly after.

A two-motor hybrid system will appear in a new Accord Hybrid due by 2018, and development of a three-motor hybrid system is also underway. Honda confirmed that the fuel cell vehicle, battery-electric car and plug-in hybrids "will become a mainstream, volume pillar for the Honda brand,” at a press conference in June.