Honda is really weighing its near-future strategy on gas-electric hybrid propulsion as the stepping stone to a full electric vehicle range by 2040. Speaking with AutomotiveNews at its press conference during the National Automobile Dealers Association in New Orleans, vice president for Honda’s national auto sales, Jessica Laudermilk, said that Honda’s plans to focus on hybrids as a bridge to its future EV models is working.
In lieu of the recent “EV slowdown” that describes the lukewarm demand for electric vehicles in the United States, automakers have been refocusing their electrification initiatives on gas-electric hybrid models. Despite the push towards electrification, the market said otherwise, essentially demonstrating that Americans just aren’t interested or ready for electric in the vehicle. The reasons for this can be attributed to ongoing
fears of range anxiety
, inconsistent and unreliable charging infrastructure, and high costs of entry.
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Honda Believes Its Strong Hybrid Lineup Will Eventually Convert Buyers To Its EV Models
Since Honda began shifting its strategy towards electrification, the Japanese automaker knew that hybrids would play a crucial role in the industry’s shift toward electric vehicles. As a result, the company launched a hybrid variant for nearly all its models, including the Civic Hybrid, Accord Hybrid, and CR-V Hybrid.
The idea is that these models will hopefully convert people to the new Prologue EV and the production variants of the 0 Series when they hit showrooms in the coming years.
“When we rolled out the CR-V hybrid and Accord hybrid, we ramped up production to be about 50 percent of the mix on both models to help bridge our customers to electrification,” Laudermilk told AN. “We came out with a two-year lease strategy on the CR-V hybrid thinking that those customers would be well-positioned to get into a Prologue.”
Since Honda expanded its hybrid offerings, Laudermilk said that hybrids make up nearly 30 percent of Honda’s total sales today.
“We see all of these models as a stair-step approach to get customers ready for electrification and prepare our dealers to sell things like software-defined vehicles with HondaLink, especially knowing 0 Series will be a lot higher tech,” Laudermilk continued.
Matthew Phillips, CEO of Car Pros, a small dealership group that consists of nine stores in California and Washington, including a Honda dealership in Cali, agrees that the hybrid sales are helping garner interest in EVs among repeat Honda customers.
“Honda was very innovative in the way they positioned their hybrids to get people comfortable with electrification,” Phillips said to AN. “In the past, you move someone up a trim level or up a model, but electric vehicles are a little different in that they really have to work with your lifestyle and driving habits.”
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EVs Are Still A Challenge
But. some, like Chris Zamora, chairman of Honda National Dealer Advisory Board, say EVs still have their challenges. The main ones: charging and range anxiety. Even for a brand like Honda, which has one of the strongest retention rates and brand loyalty in the country, the switch to EVs still presents challenges for the brand.
“All bets are off when it comes to EVs,” Zamora commented. “People want to know where they’re going to charge and what they’re going to do if there’s no range and the kids have to get to school,” noting that there’s a lot more thought that goes into the buying process for EVs.
