Honda News

Honda has renewed its partnership with GAC in China, after months of speculation it would pull out of the agreement when its original 30 year contract ended.The GAC/Honda joint-venture in China has struggled for market share, even amongst other foreign partnerships. With the rise of China’s automakers such as BYD, Geely and SAIC, not to mention even smaller players XPeng and Xiaomi soaking up domestic market share, even once-successful joint venture players such as Volkswagen (the longest serving and most successful of all) are faltering.Nikkei Asia reports Honda’s market share in China has fallen 60 per cent last year, with GAC Honda specifically fallen to 340,000 units. While that might seem enormous given the brand’s mere 15,383 unit tally in Australia last year, it makes it a relative minnow in the enormous Chinese market, where annual sales for the biggest brands are frequently measured in the millions.Honda has renewed its agreement with the Chinese giant for a further 10 years, a Honda spokesperson told Nikkei Asia.“We’ve made this decision in order to assess the business environment,” the spokesperson said.An executive from one of the JV’s suppliers told the outlet, "this is Honda sending a message that it won't give up on China".It is notable the Honda/GAC operation currently has less joint-venture models than most rivals, and only one purely electric model in a market, which is demanding more zero-emissions options.GAC Honda currently sells the Honda Breeze (a re-styled CR-V), ageing Avancier coupe SUV, and a sedan Integra (not related to the coupe sold in Australia) all as unique combustion models, while also selling Chinese domestic versions of the Accord, Odyssey, and HR-V (as the Vezel).The only electric car the JV sells is the P7 mid-size SUV in an EV-hungry market, while the Dongfeng joint venture sells its own version, dubbed the S7, and the more affordable e:NS2 crossover. Despite showing several concept models at Chinese motor shows in previous years, new and more desirable models are yet to materialise in the fast-moving market.Even GAC’s joint venture with Toyota was significantly more successful last year, moving around 756,000 units, with popular JV models including the bZ3X, which shares its platform with the GAC Aion V.The bZ3X has since become available in right-hand drive form for Hong Kong. Toyota Australia hasn’t ruled the China-built model out for our market either, given it will need to sell more electric vehicles in the near future to comply with the strict new vehicle emissions standards (NVES), which closes the vice on hybrid models before long.As for Honda using the sought-after ‘China Speed’ manufacturing for more cost-effective export models, it is only just testing the waters resurrecting the Insight nameplate for a version of the China-built e:NS2 from its Dongfeng venture sold in Japan.Meanwhile rivals are forging ahead with Chinese partnerships for export, with Kia and Hyundai already selling the Chinese-built EV5 and Elexio in Australia respectively, and Nissan announcing its intention to make its Dongfeng joint-venture models like the Frontier Pro PHEV ute and NX8 large SUV available globally.

Japan’s major carmakers are reportedly looking to band together and standardise componentry in order to stand up against the rise of Chinese players.As reported by Automotive News, this directive is coming from Japan Automobile Manufacturers Association (JAMA) Chairman Koji Sato who is also the Toyota Vice Chairman and Chief Industry Officer.As a start, Sato is looking to standardise wiring harnesses across the Honda, Mazda, Mitsubishi, Nissan, Subaru, Suzuki and Toyota brands, which could reportedly increase productivity more than tenfold.There could also be scope to widen the commonality to steel grades, plastics, among other common components to manufacture cars.“Right now, the most important theme facing the Japanese auto industry is improving ‘international competitiveness’,” said Sato to Automotive News.“We aim to strategically create ‘areas of cooperation’ to improve efficiency, thereby accelerating coexistence in the essential ‘areas of competition.“We have a strong sense of crisis that the Japanese auto industry is in a massive period of transition.“Now is exactly the time to further develop and evolve with the challenges and reform initiatives that the auto industry as a whole must face.“Unless things change, we will not survive.”“We are really talking about what we can do together, because we do see that other industries in other countries or other parts of the world are better organised than us,” said Nissan Motor Company CEO Ivan Espinosa to Automotive News.“We will see a lot more collaboration among Japanese OEMs.“We have a big opportunity to start sharing critical commodities, at least having a common spec on certain things.“We’d have something like a JAMA standard that complies with the requirements of all of us, where we certify some suppliers, and then use this freely.”Beyond this parts standardisation across the Japanese carmakers, JAMA is also reportedly looking to commonise logistics, simplify Japan’s automobile taxing system, redesign the country’s autonomous driving infrastructure, secure access to raw materials, commercialise a circular recycling economy, as well as improve talent recruitment.Even if Japan’s major OEMs can band together and standardise componentry, it still may not be enough to compete against the so-called 'China Speed.'As recently reported, BYD Executive Vice President He Zhiqi claimed that 650 new or updated cars have launched in China in the first half of 2026. This equals around 25 vehicles per week.Many Chinese brands are also having breakthrough success in many export markets, including Australia.China overtook Japan earlier this year to become the largest importer of new vehicles in Australia, ending a 28-year streak.In the first half of 2026 a total of 175,151 new vehicles sold in Australia were manufactured in China, according to VFACTS. This is up 70.2 per cent year-on-year.This number is higher when sales figures from the Electric Vehicle Council (EVC) are factored in, however it doesn’t stipulate the vehicle’s country of origin in its reports. Polestar and Tesla report their sales figures through the EVC, rather than VFACTS.On the other hand, a total of 144,430 new vehicles sold in Australia in the first half of 2026 were imported from Japan. This is down 22.8 per cent year-on-year.It’s worth noting that many Japanese carmakers already have partnerships or joint ventures with Chinese carmakers to produce vehicles in China, mainly for China.However, some of these brands are exporting these Chinese-made models to other markets, including Australia.Examples include the Mazda 6e and soon the Mazda CX-6e, and Nissan is still assessing whether to bring some of its popular Chinese-made vehicles Down Under, like the Frontier Pro plug-in hybrid ute and NX8 hybrid and electric SUV.

Honda has rolled out upgrades to its Fit hatchback, which was known as the Jazz in Australia.Once one of our markets most popular hatchbacks, Honda Australia discontinued it in 2021 and has since cited the shrinking market share for hatchbacks and higher entry price of the new model as reasons that it has yet to return.Despite this, the new fourth-generation model has been on sale in the UK for some time and has now been updated in its home market of Japan.Celebrating its 25th anniversary, the new version has tweaked styling and variant structures, as well as upgraded materials inside and out, with an upgraded multimedia suite.In addition, the RS variant scores sportier gloss-finish design touches, while the range-topping Crosstar gets SUV-like plastic overfenders, with a higher level of standard inclusions for this update like a heated steering wheel and front seats.The new Fit continues to be available in Japan with two powertrains, either a 1.5-litre dual-motor plugless hybrid (90kW/253Nm) or a 1.5-litre petrol (87kW/142Nm) with a CVT automatic. In Japan, the Fit can be had in front- or all-wheel drive layouts in any variant and with any powertrain, while in the UK it can only be had as a front-wheel drive in hybrid form.In Japan the Fit range spans from the equivalent of $16,084 for a base front-wheel drive non-hybrid to $26,320 for the range-topping Crosstar e:HEV AWD. In the UK the pre-update Jazz version starts from a much more expensive A$52,388 for a base e:HEV Elegance, and tops out at an eye-watering $56,868 for the top-spec Crosstar e:HEV.At the time of its discontinuation, the locally-sold Honda Jazz was one of the most affordable new cars on sale in Australia, with a starting price of just $14,990 before on-roads for an entry-level VTi manual, with the top-spec send-off VTi Limited Edition priced at $19,990 before on-roads.The entry-point to the Honda range now is the Fit-related HR-V Vi X small SUV, which is priced from $32,900 drive-away.Honda has said it won’t return to the hatch segment with the Jazz, but it will return with its fully electric Super-One city hatchback, which is due in Australia before the end of the year.The Super One is priced lower than the Jazz, in the UK anyway, from the equivalent of $36,704.Whether it has what it takes to challenge the growing array of Chinese offerings in the electric hatchback space, spanning from the similarly-sized BYD Atto 1 ($23,990 BOCs) to the BYD Dolphin ($29,990 BOCs) and MG4 Urban ($31,990 drive-away) remains to be seen.Honda is in the process of expanding on its range of plugless hybrid offerings in Australia as it looks to improve its fortunes since it changed its business model to an ‘agency’ style from a traditional dealer model in 2021 coinciding with the discontinuation of the Jazz.

The Honda Civic Type R is back in stock, but it won't stick around for long.This new batch of the Japanese sports car will be priced from $85,000 drive-away, which is $500 cheaper than the previous allocation. There will be less than 100 (expected to be 98) units available, with deliveries expected in December.The Civic Type R is one of the most sought after sports cars on the market.It tackles hot hatch rivals such as the Volkswagen Golf R ($71,990, before on-road costs).It has not been available for mass order in Australia since August 2025, when it sold out in less than an hour.This latest batch will not be fitted with the carbon fibre spoiler as standard, with it instead available as a pricey $4100 option, which effectively makes it more expensive than the previous version once the spoiler is accounted for.The Civic Type R has been subject to several price increases during its time in Australia.It is now in excess of $12,000 more expensive compared to when it first went on sale.It will continue to be powered by a 2.0-litre turbo-petrol four-cylinder engine, producing 235kW and 420Nm, paired with a six-speed manual transmission.  The brand was forced to axe the Civic Type R in Europe at the start of this year, due to tightening emissions standards. Honda is also facing emissions pressures Down Under, so it could have to make a similar move here at some point.The brand recently announced it will be investing heavily into hybrid models over the next few years.Honda has already added hybrid power to much of its range in Australia, including on its CR-V, HR-V and ZR-V SUVs.There are no plans for the Civic Type R to be given hybrid power at this stage.Bookings for the Civic Type R will open on Monday 6th of July at 12:00 pm at Honda dealers, and 3:00 pm online.Buyers will be required to place a $5000 to secure their order. 

Two of Japan’s biggest car manufacturers are edging closer to a game-changing team-up, and it could have huge implications for Australia. Honda Chief Executive Officer Toshihiro Mibe has told shareholders the brand is in final talks with Nissan to collaborate on key software information. The deal was described as a “win-win relationship” by Mibe.It will see the pair share electronic control units (ECU) responsible for in-vehicle systems and autonomous driving, among other things.The standardisation of ECUs will form the basis of the brands’ next-generation vehicles, many of which could be on their way to Australia in the coming years. These ECUs would also be used in future Mitsubishi vehicles as Nissan maintains a sizeable stake in the carmaker. Next-generation electrified cars are increasingly important in markets like Australia where there are now fines for high emitting engines, but neither Honda or Nissan offer substantial EV lineups Down Under and have been slower to roll-out affordable hybrids across their range compared to some rivals. Honda recently backtracked on its global EV plans and will instead focus on a hybrid strategy.The Super-One city car, due later this year, is the only confirmed electric offering from the brand.Nissan has more comprehensive EV model lineup, but it has just one EV on sale in Australia, which is its Ariya mid-size SUV.A collaboration between Honda and Nissan could provide the impetus required to produce more future electrified cars for markets like Australia.There are still issues for the brands to iron out, including development funds, but it looks like an agreement is not too far away, according to Nikkei Asia. It could be reached within the next few weeks, meaning the technology could be in cars before the end of the decade.This is all contingent on Nissan convincing Renault, as the French brand holds a 15 per cent voting stake in its alliance partner. Renault has previously presented a roadblock to Nissan, halting talks over a merger in the past.News of a partnership between Honda and Nissan comes as they struggle to stave off the increasing power of Chinese carmakers in global markets.Nissan President Ivan Espinosa recently said carmakers needed to learn from China."China is as of now setting the industry standards of the future in terms of technology, in terms of cost competitiveness and in terms of development time," Espinosa told Nikkei Asia.Chinese brands have formed relationships with mainstream carmakers to collaborate on products and technology. This collaboration has seen many of China’s carmakers surge up the sales charts across the world.Nissan has developed a strong relationship with Chinese brand Dongfeng over the years, mainly focussing on China-based models.It recently spawned the Nissan Frontier Pro plug-in hybrid ute, which is expected to be known as the Navara Pro when it arrives in Australia, likely next year. Honda hopes some type of collaboration in its deal with Nissan will get it back on track as it looks to overturn heavy financial losses. "We will internalise the means to beat emerging forces within three years," Mibe said. "If we don't, our four-wheel business will be in trouble. We will face this challenge with unwavering determination."Honda has its own relationship with Chinese carmaker GAC, but this venture has been embattled in recent years, thanks to a bruising price war in the Chinese domestic market, which has seen it sell cars at a loss.It has raised doubts that the GAC/Honda joint venture will continue after its renewal date comes due in 2028. The two brands have been partners for nearly 30 years.

Fifty years ago, on July 1, 1976, the worst new Holden up to that point was released, the HX series. And everything changed.Not coincidentally, it was also the date that all new internal combustion engine vehicles except those under 850cc in capacity or with liquid petroleum gas had to comply with stricter emissions standards known as Australian Design Rule 27A (ADR27A).This law proved to be a nightmare for parent company General Motors-Holden’s (GMH) Ltd.With fuel consumption up, power down and prices jumping to cover the extra technology necessary to meet the new regulations over the preceding HJ series, Holden’s engineers struggled to make its 1960s-era engines cope with the required updates in what was the country’s best-selling car line since the early 1950s.Critics and road testers alike savaged the HX as a result, accusing Holden of being cynical and out of touch, though it managed to hang on to the top spot for 1976.“Perhaps we would be better off with dirty engines and improved driveability,” quipped Wheels magazine editor Peter Robinson.Unfortunately for GMH, three unexpected things also happened right around that time that led to fundamental shifts in consumer tastes.Firstly, Japan was ready to launch its next phase of world-beating passenger cars that could easily meet ADR27A, headed by the original Honda Accord that almost single-handedly elevated that country’s entire industry overnight.Others followed in its footsteps, including the Mazda 323 and Datsun Skyline.Yet it was the shock success of the Chrysler Sigma, supplied by Mitsubishi, that became GMH's second big setback, shooting up the charts to a podium finish soon after its 1977 launch, and stayed there for half a decade.The Sigma lured many former and would-be Holden owners away in droves, particularly from the brand's waning Torana and Sunbird models it competed directly against, and even cannibalised Chrysler’s own Valiant in the process. Sigma was an automotive phenomenon that led directly to the iconic Australian-developed Magna later on.And last but not least, arch-rival Ford, which had been nipping at the Holden’s heels with the Falcon since the XB Falcon snatched number one for just one month in late 1973, had pulled out all stops in making the succeeding XC series demonstrably superior. GMH certainly wasn't expecting that.While the change from HJ to HX was little more than a fussier grille, revised instrumentation and several other, mostly minor, alterations, Ford expensively reengineered its engines to make them better than before, not worse. And it also redesigned the Falcon's nose, tail, back doors and dashboard, for a far-fresher look and feel.Plus, the XC launched the Fairmont GXL sports/luxury flagship. In the spirit of the legendary Falcon GTs, contemporary reviewers declared it as one of the greatest Australian-made family cars to date.In stark contrast to the basting the HX endured, XC sales flourished, with the Falcon becoming Australia’s best-selling car in 1977, period – an achievement it managed again from 1981 through to 1989, signalling the start of Ford Australia’s halcyon days.Half a century after the HX’s painful birth, perspective shows us a company grappling to deal fast enough with rapid change – something that Holden would pay the ultimate price for by 2020.Yet, to GMH’s credit, the more-comprehensively changed HZ series that followed in October, 1977, addressed most of the HX’s issues, whilst leap-frogging the Falcon in both sales as well as a driver’s car, thanks to chassis tweaks marketed to great effect using a tagline borrowed from Pontiac in the US called Radial Tuned Suspension.A stunning turnaround, it restored the Holden to the top spot for 1978, in time for the smaller, Opel-based VB Commodore to turn the market on its ear leading into the 1980s.A brief hiccup then largely due to ADR27A, a total of 110,669 HXs were built. And though the series has long lived in the shadow of the massively popular HQ/HJ models before it and the beloved HZ afterwards, 50 years later, its appeal is palpable. Who wouldn't have one?As a colourful piece of Australian motoring history, recognition is deserved. If nothing else, the garish Monaro LE two-door coupe runout edition remains one of the most 1970s things ever to happen in local motoring folklore!And it was the first Holden that actively attempted to minimise its emissions impact. That’s got to be worth celebrating. Happy 50 birthday, Holden HX!

2026 has been a massive year of change for Australia’s new car market. The tide has turned against diesel, and global affairs have pushed more buyers than ever to hybrid and electric cars and into the arms of new brands with more competitive offerings.This has been disastrous for old favourites. In a market where the forever steadfast and market-leading Toyota has taken a nearly 25 per cent hit to its sales figures, something is definitely changing in the mindsets of buyers.Chery, BYD, Geely and Zeekr are up staggering amounts and are stealing sales from Subaru, Mitsubishi and Nissan, which are now looking at a future as former top-10 marques.There are still a handful of big name brands continuing to post gains. It’s a diverse group ranging from Mercedes-Benz to Hyundai.Let’s take a lookAfter years of nosediving down the Aussie new car sales charts, thanks to what the brand would probably describe as a tactical retreat to a more limited footprint and ‘agency’ sales model, Honda seems to have stabilised.The Japanese brand has posted a 5.1 per cent gain year-on-year accounting for a mere 52 units.It’s not a great story looking at the by-the-model numbers, with every car in the brands range posting declines apart from its best-selling CR-V posting a 4.4 per cent gain year-on-year, the ZR-V is up a very modest 0.8 per cent year-on-year and the brand-new Prelude sports car posted an additional 142 units.The Accord sedan has shrunk to a handful of units off of an already-low-base, while the Civic also posted a near 30 per cent decline.Hyundai has had a pretty decent year, even though its initial trailblazing range of EVs have had it tough in the face of new rivals.Up 5.1 per cent for the year, Hyundai’s gains come from its ageing Tucson mid-sizer and high-performing Kona small SUV, which is available with the choice of petrol, hybrid and pure electric power.It also posted solid gains from the addition of the Chinese-built Elexio to its range.The fully electric Hyundai Inster city car, which initially had a tepid reception, has surged back thanks to price-cuts and a renewed interest in electric cars off the back of the fuel crisis. The brand’s once-headline-grabbing Ioniq 5 and Ioniq 6, with their advanced E-GMP 800-volt platforms, continue to lose their shine.The loss of the i30 has also put a dent in the brands range, while the Venue also continues to tumble down the charts as it struggles to compete with keen new Chinese rivals such as the Chery Tiggo 4.Kia has proven to be a success story in 2026, with its well-received range of electric cars and Tasman ute forming a significant part of the brand’s additional volume.A gain of just 2.7 per cent isn't all good news. The Sportage has not quite enjoyed the same sales growth as its Hyundai Tucson relation, down over a thousand units year on year.The loss of the Cerato has been more than compensated for by the arrival of the K4, which has posted a massive gain of 1958 units year-on-year. The once-heavy-hitting Sorento has lost nearly half its volume.The EV3, EV4, and EV5 have all done well, but the EV6 and EV9, which are its most expensive EVs, have posted steep declines.The controversial Tasman ute is barely doing half the volume Kia had predicted pre-launch, it is still a significant volume-add for the brand, with more than 2000 units sold so far this year.The brand is up 3.4 per cent for the year, accounting for an additional 295 units. It is some of the older models from the brand’s line-up kicking goals.The A-Class and related GLA SUV posted solid gains alongside the electric EQA and EQB, while the GLC mid-size and GLE large SUVs have also done well.It’s not good news for the rest of the brand’s range. Its larger electric vehicles have failed to resonate with buyers. The EQE SUV was the hardest hit so far, down 383 units for the year, and the EQE, EQS and EQS SUV ranges all posted significant declines.Volvo’s story of steady-but-surely continues, posting a modest 2.4 per cent gain in 2026.The ever-popular XC40 continues to kick goals for the Swedish brand, with the model up 16.6 per cent year-on-year despite its age. The soon-to-be replaced XC60 also posted a small 1.8 per cent gain.The EX90, the brand’s new large fully electric SUV, is up 46.2 per cent off a very low base. The new SUV is still outsold at a ratio of three-to-one by its XC90 internal-combustion engined predecessor.The EX30 small SUV, which is a platform-share with the Zeekr X, posted modest gains, up 6.3 per cent.

Honda has a range of vehicles that has rarely been better than it is today.Outside of normal advances that makes every new model safer, cleaner and better equipped, in every measurable metric including for value, driving dynamics, ride comfort, warranty, servicing costs and efficiency, 2026 Hondas generally eclipse their 1980s to 2000s brand-heyday predecessors.Examples include the Prelude sports coupe, Civic series — including the outstanding Type R — and CR-V hybrid.So, why were sales still languishing at around 15,000 units last year when comparable rivals, Volkswagen and Subaru, shifted about 40,000 vehicles each, Mazda 90,000 and Toyota 240,000?In the late 2000s, it was aiming for 80,000 annually. What happened? We pitched this question and more to Honda Australia bosses.Fixing ‘Hondas are too expensive’ perceptionSince shifting from recommended retail pricing to the highly-controversial no-haggle/drive-away pricing 'agency model' in mid-2021, the perception is that its vehicles are now too expensive.Losing the entry-level Jazz light car from the low $20,000 mark did not help. Suddenly, the cheapest Honda was the previous Civic from $31,000 in runout, jumping to $45,000 when the next-gen model appeared for 2022. Ouch.The thing is, every single established model, especially the HR-V, Civic and CR-V, have taken big strides in adopting big generational improvements ever since. And, factoring in equipment levels, rivals like Toyota, Mazda and Volkswagen did close the gap with Honda. A key example of this is the HR-V hybrid from $39,900 drive-away.“For us, and ever since we've transitioned to this (agency) model, the simplicity and the transparency for the customer has been paramount,” according to Honda Australia Director, Rob Thorp. “(These) trump some of the other gimmicks or methods that others maybe choose… it doesn't work for everybody, but for us, that premise is just core to how we want to go to market.“OK. People may have a different view. But we're very firm in the simplicity and transparency aspect.”Smarter marketingHonda admits its marketing has not been good enough to achieve the sales it wants.But Honda Australia President and CEO, Jay Joseph, does not believe that the agency model is to blame.“I would flip your question around, and I respect the question, but I would say, actually, we need to do a better job, explaining to the public, to our customers, the advantages of (agency) one price,” he admits. “Some people think no haggling means, ‘Oh, that means you're just not giving me anything’, but the real advantage is, actually, we're promising you that everybody gets the same price.“You'll never be embarrassed at a barbeque when your neighbour says, ‘Oh, you paid that? I paid this much less’. That won't happen, because we've made that commitment to the buyer.“So, actually, once, if we do a better job, explaining that, I think we're protecting them better than anything else.”Boosting salesAccording to Thorp, better sales results are coming.“We agree with you that, when we look at our current line-up… they all deserve more than what they're currently generating,” he revealed.“But we know that in this current environment, it's just not easy to just lift your volume. It does require all parts of the business to be working harmoniously.“So, whether that's through our network or through our marketing and advertising, through the pricing of the product launches that we have now, all that has to work harmoniously well.”But Thorp says there is no going back.“Last year, we were able to grow 10 per cent year-on-year in a market that's pretty flat and the competition is pretty intense,” he said. “And this year, we're also looking for ongoing sustainable growth and are on track to deliver another 10 per cent as well.“So, we know that there's opportunity for us to expand our volume and our growth, but we also keen to do it in a very sustainable way.“You know, certainly we could discount and damage the brand to achieve that volume growth, but that's not what we want. We want it in a sustainable way, in a way that works for us, for our network, but most importantly, for our customers.And we think our strategy will deliver on that.”Greater visibilityHonda Australia went from over 105 dealers to 75 sales sites since 2021, prompting critics to point to a lack of visibility for consumers who otherwise shop elsewhere.“Brand presence is certainly a factor (of our lower sales)," Joseph admits.“And we won't dismiss or discount that.“As we grow volume, one of the things that we're looking at is, ‘do we have the network necessary to deliver that?’ Is it time for us to grow? That’s one of the questions we talk about.“But that's not how people shop. People don't begin shopping in a dealership anymore. They begin online.“So, really, over the last two years, and this predates my time in the last 14 months, we've been rebuilding a brand, marketing and sales machine, that works together.“Putting those pieces together that Rob (Thorp) was just describing, so that we have a system that works to attract people.“If you think about our jobs, it's actually pretty simple. We're just supposed to be matchmakers. We're supposed to deliver a product to a location where it can be sold, and we're supposed to drive consumer traffic to that location. Now that location happens to be more online now, and we've just put the pieces together for people to conduct those transactions online.“We’re getting some traction with that, we're seeing the result of it, and now we've got new product coming in on top of that.”

While Japanese brands increasingly turn to Chinese partnerships for more affordable and globally competitive models, it doesn’t always work out.According to Nikkei Asia, GAC, which recently launched in Australia and has some of the biggest name joint-venture partners in China, is in trouble.The Guangzhou-based automaker, which counts Toyota and Honda as long-term partners, has been losing money on every single vehicle it sells as it has recently been trying to fight in an aggressive Chinese domestic price war with BYD and others.According to figures published by Nikkei Asia, at one point the company was losing the equivalent of  A$1714 on every single vehicle sold under its own branding. In its annual results announcement for the full year of 2025 reported to the Hong Kong Stock Exchange, GAC said its subsequent loss in revenue was due to “intense competition in the automobile industry,” earmarking risks to the future of its business from “increasing survival pressure on automobile enterprises and entering the high-speed shuffling phase of survival of the fittest”.GAC said the level of competition was directly eroding its profit margins, and with Chinese brands approaching 70 per cent sales proportion in the local market, it was placing pressure on joint-venture brands.GAC’s annual results documents also revealed some realities of the Chinese market that is directly contributing to the big push for longer-range plug-in hybrid models, which are increasingly making their way to Australia.“Technical requirements for vehicles eligible for tax reductions and incentives has been raised. The pure electric mode range and energy consumption standards for plug-in hybrid (including range-extended) passenger vehicles have been further tightened,” the company said.“If a company lags in R&D or supply chain fails to meet the standards, its main models may not comply with the new regulations, resulting in the loss of subsidy eligibility or market access To meet stricter safety, range, and environmental standards, enterprises’ mandatory investments in areas such as battery materials, thermal management systems, and low-carbon manufacturing processes will continuously increase. At the same time, the phase-out of purchase tax subsidies has directly reduced profit margins per vehicle, presenting severe challenges to the overall profitability of the industry.”As a result, GAC said the company’s operating profit had declined for two years straight, and had recorded a loss for the first time since listing with the exchange in 2010.Nikkei Asia points out the company had been heavily discounting its Aion-branded vehicles (two of which are sold in Australia - the UT hatch and V mid-size SUV) to keep up with the aggressive discounting of rivals, but was failing to meet volume expectations.The bleak competitive landscape comes as GAC’s long-term joint-venture with Honda is due for renewal by 2028 after 30 years. Honda-branded JV vehicles in China have experienced a slump at the same time as its Japanese parent recorded its first ever financial year loss for the 2025 Japanese Financial Year off the back of expensive global EV investments (amounting to the equivalent of $12.5 billion AUD), which have subsequently been cancelled and written-down.Honda executives have reportedly been taking meetings with GAC, and are yet to make a decision on the future of the partnership, according to Nikkei Asia.It is in stark contrast to Nissan, for example, which is only leaning further into its comparatively successful joint-venture with Dongfeng (with which Honda also has a joint-venture), which has netted a range of well-received models with big global potential, including the N7 sedan, NX8 SUV and Frontier Pro ute.GAC/Honda don’t have plans to export cars to markets like Australia. GAC's joint-venture with Toyota has been more successful in China, and has launched in right-hand drive markets such as Hong Kong.Market troubles in China have only been good news for the Australian market, with many brands seeking higher-margin markets to soak up production capacity and bolster profits, which is part of the reason our new car landscape has become so crowded and competitive.

Honda has announced that it is developing an advanced hybrid set-up for its next-generation Pilot full-sized SUV, to give the Japanese brand a more-effective rival against the Toyota Kluger, Kia Sorento, Hyundai Palisade and others.And after nearly a quarter of a century of being a largely North America-only model, it may even come to Australia.Why? To be built upon a new electrification-ready large-vehicle architecture set to debut sometime in 2028, this might be the first Pilot in four iterations since 2002 that is not solely manufactured in left-hand drive (LHD).While flatly refusing to comment on any future product, Honda Australia President and CEO Jay Joseph did reveal that things are changing within the company as it seeks out greater efficiencies globally, that may open the door to vehicles that were previously unavailable here."The right hand drive requirement is a little bit of a challenge for some of the North American product that we have, which was always intended of LHD," he told CarsGuide."But we're becoming more capable, and more adept, at being flexible on that. So that option is opening up."Not a confirmation then that the Pilot or any other US-made LHD-only will definitely come to Australia, but the strongest evidence in years that one of the biggest obstacles that Honda has faced here may soon be reduced, if not eradicated.So, why is the brand's next full-sized, three-row SUV so important?Announced last month as part of Honda’s new-model strategy outlining a focus away from electric vehicles (EVs) to hybrids, it will address the current Pilot’s biggest issue – the lack of a hybrid alternative to the powerful but thirsty 3.5-litre V6 petrol unit, hurting sales and giving rivals a free kick in one of the world's largest markets.In its place will be a V6 petrol/hybrid powertrain, reportedly of 3.0 litres in capacity, acting partly as a generator for the plug-less range-extender electric vehicle tech, charging a sizeable battery that power electric motors via a hybrid transmission, as well as clutching in direct drive to all four wheels as required.Along with dramatic fuel-economy gains, significant weight savings (upwards of 100kg) have also been earmarked for the platform.Additionally, Honda said that it is adopting some Chinese and Indian-market practices and methodologies to make its centrepiece hybrid tech price competitive, ushering in a far-more efficient model development process it refers to as “Triple Half: 50% Reduction”.In a nutshell, compared to 2025 levels, each successive Honda should cost half the amount of money to develop, and build, and in half the amount of time (hence the triple reference), slashing costs and boosting global accessibility along the way.And the Pilot is just the start.The new hybrid powertrain and architecture is also slated for the next Passport (a related but smaller five-seater SUV with some off-road capability), the long-overdue North American-market Odyssey redesign (the current minivan is already eight-years old), and – as reported in CarsGuide recently – the next-gen Ridgeline monocoque-bodied dual-cab ute.Expect to also see it feature in a future Accord (as strongly hinted by the Honda Hybrid Sedan Prototype revealed last month), along with a host of corresponding Acura luxury-brand SUVs.While Honda's American luxury brand that pre-dates Lexus is unlikely to arrive in Australia any time soon, it seems having access to a BYD Shark 6 PHEV ute or Hyundai Santa Fe hybrid SUV rival to fill in some big gaps in the local portfolio would be desirable.With 15 new models promised globally between now and 2031 (which do include Acura), the Honda Australia boss indicated that the future range will largely mirror what North America and Asian markets offer.“In general, the North American focus products are well suited to Australia,” Joseph revealed. “The Asia market products are well suited to Australia (too)."I'd have to look at the list to give you an exact number, (but) at least a third of them, maybe half, somewhere in that range (may come to Australia).”By our calculations, that would mean between five and seven or even eight all-new models could arrive by March 31, 2031, Japan's end of financial year (JEOFY) and the deadline for those 15 newcomers.Along with replacements of ageing core existing vehicles, meaning HR-V (confirmed globally for 2028, then Civic, ZR-V, CR-V and perhaps Accord soon after), that leaves room for the Pilot and Ridgeline on top, as well as possibly one of the smaller, sub-HR-V SUVs like the Elevate/WR-V, as sold in India, Japan, South Africa, Brazil and elsewhere.As announced in Honda's widely-reported latest financial results for the most recent JEOFY report ending March 31, the company is reeling from an operating loss of around $A3.7 billion – its first in 70 years.A turnaround is forecast by the end of the 2028 JEOFY, thanks in part to these new-product innovations and several other measures including the highly-publicised cancellation of some EVs, though the coming Super One city car is not one of them.Would the next-gen Pilot hybrid be a worthwhile addition to Honda Australia's range, or it better-served pitching the future Ridgeline as a Shark 6 PHEV foe?