Leslie Massey
Honda Australia has been a mainstay in the country's top 10 selling brands since its launch in 1969. In 2018, Honda Australia sold 51,525 cars, with around 80% of these vehicles made in Thailand. However, in 2022, Honda Australia announced that it would source its new-generation petrol and hybrid versions of the Honda Civic and HR-V from Japan instead of Thailand. Honda cars for the North American market are manufactured in the United States, Japan, and Mexico, with the most significant Honda engine plant located in Anna, Ohio.
| Characteristics | Values |
|---|---|
| Year Honda arrived in Australia | Mid-1950s |
| Year Honda Australia was set up | 1969 |
| Honda Australia's position in Top 10 selling brands | 50,000 units sold between 2006 and 2008, and again in 2018 |
| Number of cars sold in Australia in 2018 | 51,525 |
| Number of cars sold in Australia in 2019 | 43,868 |
| Number of cars sold in Australia in 2020 | 29,040 |
| Number of cars sold in Australia in 2022 | 1650 cars per month (expected) |
| Honda cars made for North America manufactured in | The United States, Japan and Mexico |
| Percentage of Honda and Acura automobiles sold in the U.S. in 2017 that were made in North America | 90% |
| Honda's flagship production facility in Europe | Swindon plant, UK |
| Number of people employed at Swindon plant | 3,600 |
| Percentage of Honda vehicles sold in Australia made in Thailand | 80% |
| Country where new Honda Civic and HR-V models will be made | Japan |
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What You'll Learn
Honda Australia's history
Honda Australia Pty Ltd, commonly known as Honda Australia, is an Australian wholly-owned subsidiary of Honda Motor. Honda first arrived in Australia in the mid-1950s when independent firms imported Honda motorcycles. In the 1960s, Honda vehicles joined the motorcycle offerings, including the tiny Honda S600 sports car and the Honda N360, followed by the Accord and Civic. In 1969, Honda Australia was established as the company's first subsidiary primarily focused on selling cars.
In the late 1960s, Honda adopted a national approach to motor vehicle sales in Australia. On February 4, 1969, Japanese Manager Hidehiko Shiomi founded Honda Australia, marking the company's shift towards a unified car sales strategy in the country. By 1987, Honda Australia had become the sole importer of all Honda products, consolidating the distribution rights previously held by private distributors of motorcycles and power equipment.
Honda Australia experienced significant growth in the 1990s and continued its upward trajectory in the 2000s. Between 2006 and 2008, and again in 2018, the company sold 50,000 units, solidifying its position among the top-selling brands in Australia. Honda Australia has also demonstrated its commitment to social responsibility through The Honda Foundation, established in 1992. The foundation, funded by contributions from Honda Australia, private donors, and Honda Centres, has donated over $12 million to various causes, including supporting disadvantaged Australians and promoting new technologies to fight diseases.
In terms of manufacturing, around 80% of Honda vehicles sold in Australia are made in Thailand. However, the company has announced that the new petrol and hybrid versions of the Honda Civic and HR-V will be sourced from Japan. Honda's manufacturing footprint extends beyond Thailand and Japan, with plants in North America, Mexico, and Europe, showcasing the company's global presence and adaptability to meet market demands.
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Honda cars made in Japan
Honda Australia was established in 1969 by Japanese Manager Hidehiko Shiomi. It was the first Honda subsidiary in the world set up primarily to sell cars. In the 1990s, Honda established itself as a fast-growing brand in Australia, and in the 2000s, it reached 50,000 units sold between 2006 and 2008 and again in 2018.
While Honda Australia sells cars sourced from various countries, including Thailand, Mexico, and the United States, there are still Honda cars made in Japan for the Australian market. For instance, the new petrol and hybrid versions of the Honda Civic and HR-V will be sourced from Japan, a shift from the previous sourcing from Thailand.
Honda's flagship production facility in Europe, the Swindon plant, employs 3,600 people and is an integral part of Honda's global manufacturing network. However, the company has faced challenges due to Brexit, which led to the closure of one of its lines at the Swindon plant in the UK, impacting its production capacity.
In North America, Honda automobiles are manufactured in the United States, Japan, and Mexico, with more than 90% of Honda and Acura cars sold in the U.S. being produced in North America in 2017. Honda's Anna, Ohio engine plant is the company's largest engine plant globally, celebrating the production of its 25 millionth engine in 2022.
In China, Honda manufactures automobiles through three joint venture companies: Guangzhou Honda Automobile Co., Ltd., Dongfeng Honda Automobile Co., Ltd., and Honda Automobile (China) Co., Ltd. These companies produce vehicles for export, contributing to Honda's global presence.
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Honda cars made in Thailand
Honda Australia Pty Ltd, commonly referred to as Honda Australia, is a wholly-owned subsidiary of Honda Motor. Honda vehicles arrived in Australia in the mid-1950s, with independent firms importing Honda motorcycles. By the 1960s, Honda vehicles, including the Honda S600 sports car, the N360, and later the Accord and Civic, were being sold in Australia. Honda Australia was established in 1969, becoming the first Honda subsidiary in the world set up primarily to sell cars.
Honda Australia has been a top-selling brand in the country, with over 50,000 units sold between 2006 and 2008, and again in 2018. Honda vehicles sold in Australia are sourced from various manufacturing bases, including Thailand.
Honda Automobile (Thailand) Co., Ltd. is Thailand's second-largest manufacturer and exporter of passenger cars. In 2007, the company celebrated the production of its one millionth car, marking a significant milestone since the first 'made-in-Thailand' Honda vehicle in 1984. The 1,000,000th unit was the 2008 Accord, which made its local debut in November 2007.
Honda's manufacturing facility in Thailand is the sixth largest in the world. The company has invested in technology and skills transfer to the country, making it a strategic manufacturing base for the Asia-Oceania regions. Honda vehicles and auto parts made in Thailand are exported to 14 countries for CKD (completely knocked down) and to over 30 countries for CBU (completely built-up) units.
Honda Thailand offers a range of models, including the premium sport sedan with full hybrid e:HEV technology, the City Hatchback, and the Type R, which is born from racing technology. The company also offers a premium SUV and a sleek and spacious SUV for city driving and country adventures.
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Honda cars made in North America
Honda has been manufacturing products in America since 1979, when it opened its first plant in Marysville, Ohio. Today, Honda has 12 manufacturing plants across the country, employing over 23,000 Americans. These plants produce 3.5 million products annually, including Honda and Acura vehicles and their engines, transmissions, and components, as well as aircraft and aircraft engines, power equipment, and powersports products.
Honda has exported more than 13.4 million U.S.-made products since 1987, with exports including automobiles, powersports products, power equipment, service parts, and aircraft. The company was the first Japanese automaker to build engines (in 1985) and transmissions (in 1989) in the U.S., and the first to export U.S.-built cars to overseas markets (in 1987).
While Honda is a Japan-based company, it has a significant presence in the United States, with facilities in several states, including Ohio, Indiana, Alabama, North Carolina, and South Carolina. The Honda Accord, Accord Hybrid, and CR-V are built in Ohio, while the Insight Hybrid is manufactured in Indiana, and the Honda Passports are produced in Alabama. Additionally, the Georgia factory builds 10-speed automatic transmissions.
Some of the Honda models made in the USA include the Accord, Accord Hybrid, CR-V, Insight Hybrid, and Passport. These vehicles offer improved fuel economy and above-average MPG, with tax credits available for those who invest in hybrid models.
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Honda Australia's sales figures
Honda Australia Pty Ltd, commonly known as Honda Australia, is an Australian wholly-owned subsidiary of Honda Motor. Honda motorcycles were first imported to Australia by independent firms in the mid-1950s, and by the 1960s, Honda vehicles were also being sold in the country. Honda Australia was established in 1969 as the first Honda subsidiary in the world set up primarily to sell cars.
In the 1990s, Honda established itself as a quickly growing brand in Australia, and in the 2000s, it reached 50,000 units sold between 2006 and 2008 and again in 2018. Honda has been a mainstay in the top 10 selling brands in Australia, but in 2024, it posted its worst annual sales figure in modern history. This was followed by another poor sales year in 2023, with 13,734 new-vehicle sales—the lowest since industry 'VFACTS' records began in the mid-1990s. In 2022, Honda sold 14,215 vehicles, down from 29,040 in 2020.
Honda's sales decline has been attributed to various factors, including its switch to non-negotiable fixed prices for new cars in July 2021, a shrinking dealer network, and increased competition from other brands. However, Honda Australia has defended its move to an agency sales model, claiming that it has been well-received by dealerships, who no longer have to finance floor plans and deal with increasing interest rates.
Despite the recent sales slump, Honda Australia remains optimistic about its future prospects. The company has set a target of 20,000 annual deliveries in Australia for 2024, backed by the introduction of new models such as the ZR-V and CR-V SUVs. In the first quarter of 2024, Honda sales increased by 18.9%, with 4683 cars sold. This improvement has been attributed to the ZR-V mid-size SUV and a small growth in sales of the HR-V compact SUV.
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Frequently asked questions
Around 80% of Honda vehicles sold in Australia are made in Thailand. Honda cars for the North American market are manufactured in the United States, Japan, and Mexico.
Honda arrived in Australia in the mid-1950s when independent firms imported Honda motorcycles. Honda vehicles, including the Honda S600 sports car and Honda N360, were introduced in the 1960s. Honda Australia, the first Honda subsidiary focused on car sales, was established in 1969.
Honda Australia sold 51,525 cars in 2018.
