Honda aims to reverse its European sales slump with “unique” cars that will put a “smile” on customers’ faces. The Japanese company sold just 72,000 cars in Europe last year, down from a record 313,000 sales in the region as recently as 2007.
Honda’s European president, Hans De Jaeger, admitted that the brand is “not a big player” in the region. However, he outlined a plan to grow volumes in a “sustainable and healthy way” by leveraging its small size to create cars tailored to customer demands.
De Jaeger was speaking at the Goodwood Festival of Speed, where Honda staged a public debut for the Prelude HRC concept. This race-inspired reworking of its hybrid sports coupe features performance enhancements engineered by its motorsport division.
While De Jaeger did not confirm any firm plan to put the hot hatch into production, he pitched the concept as emblematic of Honda’s plan to return to its roots as a brand that “stands for engineering dreams, and gives products beyond customers’ expectations”.
Honda does not plan to significantly increase its regional footprint but rather slowly increase its market share in Europe, the UK, and Turkey. De Jaeger said “the most important” pillar of this strategy is to “bring a product which touches the sweet spot for our customers”.
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The HRC show car and the standard Prelude on which it is based demonstrate Honda’s desire to bring unique products to the market. De Jaeger also pointed to the new Super-N city car as an example of how the brand will buck mainstream trends to carve out a distinct brand positioning in Europe.
Reaction to the Super-N has been positive because it embodies “the kind of quirky joy” that Honda cars were historically known for. De Jaeger explained that Honda is “lucky that we are smaller” than rivals, allowing the company to focus on unique products.
In the context of new entrants taking a rapidly increasing share of the European car market, De Jaeger emphasized the importance of explaining the unique selling proposition of Honda’s products to customers. This is particularly important given the “severe” Chinese competition in the market.
Honda is “a little bit atypical” in terms of its car business being just one strand of a global business empire. The company has a hugely successful motorbike division, power tools, garden equipment, marine motors, and more. This means the brand is successful and well-known far outside the core automotive market.
Honda’s European car business is a relative minnow in volume terms compared to its colossal motorcycle operation.
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As Honda looks to the future, the company’s unique approach to the European car market will play out. By focusing on quirky, unique products, Honda may be able to carve out a distinct niche for itself in a crowded market.
Honda remains committed to its plan to bring unique products to the market. With its focus on engineering dreams and customer satisfaction, the company is poised to make a lasting impact on the European car market. As De Jaeger said, the goal is to “bring a product which is a little bit more unique into the market” and put a “smile” on customers’ faces.
De Jaeger’s plan is to make Honda a significant player in the European market by creating a distinct brand image. They will focus on unique products and customer satisfaction to achieve this goal.
The company’s small size allows it to be agile and take risks, which is essential in the competitive European car market.
Honda’s motorcycle division is a significant part of its global business empire.