Honda Australia says claims made publically about significant price rises due to the implementation of its agency business model are simply not true and the facts do not support this assertion.
The company says across the 18 individual grades that make up the current Honda vehicle range, the largest straight price increase that occurred on July 1 this year, for any one grade, was $300.
It says there were no change to the price of two grades, while the rest of the range was somewhere in between.
Honda Australia says these price changes are unrelated to the introduction of the new business model. It says changes to the price of new vehicles are a regular occurrence and can be the result of a wide variety of factors.
Honda Australia says a drive away price does not equal a price rise. On July 1, 2021, it introduced a new national drive away price for every vehicle in the Honda range, under the ‘Honda Price Promise’.
It says the national drive away price includes all on-road costs and statutory charges, as well as the metallic or pearlescent paint colour chosen by the customer. It also includes five years of premium roadside assistance.
The only items not included in the new vehicle price are any Honda Genuine Accessories selected by the customer to personalise their vehicle. Concession benefits may also apply for eligible recipients.
“The difference between the Manufacturer’s List Price (MLP) used previously is just the starting point for what a new vehicle will cost to purchase – and the new National Drive Away Price that applies from July 1, is the specific costs and statutory charges involved in purchasing and registering a new car for use on the road,” Honda Australia says.
“These on-road costs and statutory charges are different in every State and Territory, and can also differ between metropolitan, provincial and rural areas. Using Victoria as an example, these costs include the registration fee, Transport Accident Charge, insurance duty and motor vehicle duty.
“But these are costs and charges that apply to the purchase of every new car sold in Australia, regardless of make or model or geographic location or selling dealer. They apply whether the vehicle is purchased from a Honda Centre with an upfront drive away price, or from another brand operating with the MLP and adding on all the on-road costs and statutory charges to arrive at the drive away price.
“The end result is the same – these on-road costs are part of the final transaction price for every new vehicle sold in Australia and do not in any way constitute a price rise under Honda’s new business model.
“As of July 1, the national drive away price for all Honda vehicles is available for prospective customers to view on the Honda website via a new online vehicle configurator,” it says..
What is a fair timeframe to measure success?
Honda’s new business model represents a level of change and transformation unseen in the Australian new car market for more than half a century says the company.
“We knew, and our business partners knew, there would be a period of transition following such a significant change to the way the brand operates in Australia,” Honda Australia says.
“To assess its success or otherwise after just three months – a period that has also been impacted by the global pandemic, production shortages and supply chain delays, varying state, regional and local government restrictions, and business closures – is premature at best.
“When you’ve been doing something the same way for 52 years – attempting to measure the viability of a new way of doing things after just three months, has little merit. It is nothing more than a sample and it is statistically inconclusive.
“The changes we have made are long-term investments in the future of the Honda brand in Australia and in the 90-strong Honda Centre network of allied and independent businesses.
“Calling out one single metric in the form of retail sales numbers as being the ONLY measure of success, is easy to do, but it in no way accurately captures the true picture of what is occurring at Honda Centres around the country.
“Since July 1, more than 3,500 customers have experienced the new Honda way and the feedback has been overwhelmingly positive. Customers have commented favourably on the ease of the process, how it is both hassle and stress-free.
“The result is good Net Promoter Scores (NPS) across important key performance indicators like the purchase, order and delivery phases, showing broad acceptance of the Honda Price Promise and the new buying process.
“Despite an enormous level of change in how the Honda Australia business interacts with the national network of Honda Centres, the launch and transition phase to date has been executed almost perfectly, with 99% of the new systems available, operating and stable over the first few months.
“In spite of the many challenges presented by the impact of COVID over this period – which saw 65% of Australia’s population in long-term, hard lockdown and the majority of Honda Australia’s regional staff unable to step foot inside a new Honda Centre to support the network – feedback on the new business is positive and confidence is high,” Honda Australia says.
