Honda Jazz News

Honda Australia has officially axed the Jazz light car, with confirmation that the new-generation version revealed at last year’s Tokyo motor show will not make it to local showrooms.In wide-sweeping changes rolling out to Honda Australia’s business over the next 15 months, the brand will move to an ‘agency’ business model instead of using dealers.Other changes outlined by the brand include a streamlined product line-up, sans the Jazz light car.“Due to the challenges in the light hatch segment, Honda Australia will not be offering the next-generation Jazz,” it said in a release.“For Australia, Jazz will be retired in early 2021.”The Jazz follows its mechanically related City, which was announced to be discontinued late last year with stock expected to run dry in 2020.Ford Australia made a similar decision to axe its Fiesta line-up (barring the performance-focused ST grade) in April, 2018, while the Hyundai Accent is also unavailable locally.Other light cars to exit the market recently include the Holden Barina and Toyota Prius C.Last year Honda sold 5263 examples of its Jazz, accounting for 8.7 per cent of the sub-$25,000 light-car market, and outselling the MG3 (4017), Renault Clio (814), Skoda Fabia (645) and Suzuki Baleno (2277).Honda will instead rely on the CR-V, HR-V and Civic line-ups, which make up over 80 per cent of the brand’s volume, and will also have “a greater focus on higher-level grades” including the Civic Type R.As for the brand’s other models – the Accord sedan and Odyssey people mover – Honda Australia confirmed they will “remain in their supporting model roles”.However, Honda is yet to comment on the status of the NSX supercar, with the model selling in extremely low numbers due to its $420,000 before on-road costs pricetag.Current vehicles are sourced from the UK, USA, Japan and Thailand, but Honda said it is reviewing its strategy and could implement changes in line with current business realities.Honda Australia will also continue with its plans to introduce a hybrid version of each model in the near future.

Honda Australia will cut dealers from its network and will move to a fixed-priced model in a bid to stay ahead of a downward trending market.With 106 outlets currently selling and servicing Honda cars around Australia, the Japanese brand will whittle its footprint down to a yet-to-be-determined number by July 1, 2021.Honda Australia will also adopt a new ‘agency’ sales model from that point onward, with all stock owned by the brand instead of the dealers.Honda New Zealand adopted the same business model in 2016, with Toyota New Zealand following suit in 2018.As a result, all Honda vehicles will carry a fixed, non-negotiable price and dealers, now known as agents, will receive a fee from Honda to facilitate the transaction with customers.All cars will be consolidated with Australian stock held by Honda Australia, which will mean new cars will be delivered to customers after purchase.The elimination of dealer volume incentives also means that Honda could, in theory, keep its driveaway pricing more competitive.Honda Australia has also confirmed that the new-generation version of its Jazz light car will not arrive Down Under, following the discontinuation of the mechanically related City late last year.Last year Honda sold 43,868 units (-14.9 per cent), ranking it as the ninth most-popular brand in the Australia market.It’s biggest seller, the CR-V mid-size SUV, sold 13,810 units, while the HR-V small crossover (11,731) and Civic small car (10,531) came in second and third respectively.Though the three nameplates accounted for 82.2 per cent of the brands volume, it says it will still offer the recently refreshed Accord sedan, Civic Type R hot hatch and Odyssey people mover.No mention was made of the continuation of the NSX hybrid supercar that is priced at $420,000 before on-road costs.Though a disruption to sales is expected, Honda expects its sales to stabilise at around 1650 units per month in mid-2021, or just under 20,000 sales annually.Honda Australia said the decision was made after “an extensive business review to understand how to make the business stronger and more enjoyable for customers in the long-term”.Honda Australia boss Stephen Collins said: “We can’t sit still; the Australian market has seen 23 consecutive months of decline and every automotive business is rapidly changing.“Customer preferences are changing and other industries have evolved while the automotive industry still sues a model that is decades old,”“We have excellent customer retention and want to reward our loyal and highly valued customer base with a more relational and less transactional experience. We know our customers want good value, strong resale and a seamless ownership experience on top of reliable engineering and quality vehicles.“The transition over the next 15 months will be a gradual process to allow our dealer network to fully prepare for the new business model.“Honda Australia has just celebrated its 50-year anniversary; Now is the time to take the necessary steps to seek to ensure the business and network are set up for the future and that our customers are with us for the next 50 years.”

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