20
+7%
18,490 $m
Automotive
Honda’s reach comprises motorcycles, power products, aviation, and robotics, but it shines in the automotive segment. At the start of 2013, Honda was one of only four brands that sold more than five million vehicles. Building on its core volume models— the Accord, Civic, C-RV, and Odyssey— Honda launched a hybrid Accord and priced it significantly higher than competitors’ conventional models. Honda has a long history of innovation, and its reputation for more robust fuel-efficiency technology helps support the premium while connecting with consumers that have stronger environmental awareness. But the brand also continues to rack up resale value awards and rankings, further fueling a high customer retention rate. In fact, in nearly all of the most critical studies, the Honda brand is rated significantly higher than the average category retention rate. In Honda’s case this translates into record sales numbers that are not driven by fleet sales nor incentives. The 2013 incentive-free Civic exemplifies the Honda brand at its best, but going forward Honda cannot just rely on the loyalty that producing high-quality, reliable vehicles generates. The playing field continues to get more competitive and parity among automakers will continue to strengthen. With four major car launches out of the way, Honda will need to build even closer relationships with its customers and continue to do what it takes to hold the resale values of the vehicles it produces.