Honda focuses on profitability, special models, and hybrid powertrains in Europe
Image: Honda
Honda Europe is pursuing a new strategy to boost sales figures in the region. The focus is on models and hybrids that stand out from competitors, rather than electric vehicles. Hans De Jaeger, the new president of Honda Europe, deliberately prioritizes sustainable profitability over sheer sales volume. The goal is to increase sales volume to around 100,000 vehicles over the next two to three years, with Turkey also included in the target market.
Ten years ago, the company sold 130,000 cars in Europe, while that figure dropped to 71,000 last year. A key reason for this decline was the focus on profitability along with changes in regulatory emission standards, according to de Jaeger in an interview with Automotive News. The company also wants to avoid price competition from Chinese rivals in mass-market segments.
The future product lineup is intended to be more aligned with the preferences of private customers. An example of this shift is the launch of the electric microcar Super N in the United Kingdom to attract new customers. Honda takes advantage of this opportunity to source models from various regions around the world.
Europe Not a Priority
According to the European boss, Honda is focusing on three regions: the U.S., Japan, and India. However, Europe is expected to benefit from new models developed for the global market. Fifteen such models are planned by 2030. In addition, regional models that could also be offered in other countries are planned. As for products, Europe follows Japan’s lead the most, de Jaeger explained.
Honda is placing greater emphasis on hybrid technology to meet the needs of its registered customers. In Europe, the brand currently holds a 4 percent share of the private hybrid car market. The company has stayed away from a planned electric vehicle push because it does not see demand in the market at present.
In the passenger car segment, the company was able to turn a profit last year. Its strategy focuses on niche models such as the hybrid coupe Prelude (featured image) and avoids intense competition in mainstream segments, where Chinese manufacturers are increasingly entering. “We are unique,” said de Jaeger. A loyal base of one million existing customers provides an important foundation for the brand and its products.
Although the U.S., Japan, and India are considered priority markets, Europe remains a key location according to the responsible manager. “Europe is still an important market. We have no plans to increase sales to 200,000 or 250,000 vehicles. Sustainability is our starting point.”
Honda considers competition from Chinese manufacturers to be very intense. De Jaeger said that this pressure forces the company to aggressively shorten development times. He has no issue with competition from the People’s Republic as long as it remains fair.
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About the author
Thomas Langenbucher is an expert in electromobility with experience in the automotive and financial industries. Since 2011, he has been covering electric vehicles, sustainable technologies, and mobility solutions for ecomento.de. Learn more.
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