Honda’s Super-One proves bigger than niche

HONDA Australia says early demand for its first locally offered battery-electric vehicle is running considerably stronger than originally anticipated, with the importer already securing almost half its expected annual Super-One volume before prospective customers have even had the opportunity to test drive the pint-sized EV.

The unexpectedly strong response has prompted Honda to reconsider the role the Japanese-built Super-One could play locally, shifting expectations for the distinctive electric hatch from a niche proposition towards a potentially more meaningful contributor to its Australian sales tally.

Speaking with GoAuto at the launch of the Super-One in Melbourne this week, Honda Australia executives said its assessment of the model had changed considerably since it first evaluated it two years ago, reflecting both the rapid development of the Australian EV market and increasing customer interest in the car.

“I think we always knew that there was a market for this car. I think what has definitely changed in the last 12 to 24 months is the market expectation,” said Honda Australia director Robert Thorp.

“I recall seeing this car in Japan two years ago. At that time, I knew that this car would be cool, it would be funky, but that there probably wasn’t a huge market for it.

“Certainly not the volume that we’re looking at now.”

That assessment has changed as Australian interest in battery-electric vehicles has developed and Honda has exposed the Super-One to its dealer network and potential customers.

“As time’s progressed, the market shifted, and as we’ve learnt more about the vehicle as well, and we’ve been able to show it to our network, show it to consumers, the demand has definitely grown and shifted a little bit,” added Mr Thorp.

“Now, it’s becoming maybe not purely just a niche, there is a bit of volume here for us as well, which we’re really excited about.”

Honda Australia has not publicly detailed its full-year sales target for the Super-One, but said early orders have already accounted for almost half the volume it expects from the model – before customers have had an opportunity to experience the car from behind the ‘wheel.

“We sold pretty much half our volume expectation for the year without anyone actually having a test drive of the car,” said Honda Australia CEO and president Jay Joseph.

The early response is significant given the Super-One enters an increasingly competitive Australian EV market populated by considerably cheaper alternatives, particularly from Chinese manufacturers.

However, Honda maintains the Super-One is not intended to compete purely on price, battery range or specification, instead banking heavily on the model’s distinctive styling, personality and driving characteristics to distinguish it from more price-led rivals.

“We have to acknowledge there’s a distinction between the role of the small cars in the segment play and the type of buyer that engages with it,” added Mr Joseph.

“Other models in the segment are on a different journey, and that’s okay for them.

“For us, we think the package and the proposition that we’ve got is an excellent one.”

Honda Australia executives said they believe the Super-One’s visual presence will also play an important role in attracting buyers to the brand.

“You would have noticed in the drive that you did through the CBD, everyone’s looking, everyone’s turning heads,” added Mr Thorp.

“Other models in the segment and in the industry don’t have that same attractiveness and personality.

“I think that is an element that this (the Super-One), along with all of the features and spec that’s within it … adds to the story. It creates excitement and demand.

“It is not just about a price point.”

Honda Australia also dismissed concerns that the novelty surrounding the Super-One could quickly fade after its initial launch period, suggesting it already has plans to broaden or develop the model’s appeal over time.

“We’re not overly concerned by the longevity of it (the initial interest in the model). We think the ‘cool factor’ is going to stick around for a while,” said Mr Thorp.

“But we also know that what you see today (forms) part of our responsibility to continue that ‘cool factor’ for the years to come.

“We might not be positioned to talk about some of these things, but we’ve got a few things up our sleeve that we think that will allow us to add layers to the model (to) ensure that it remains of interest to customers around the country.”

Mr Thorp stopped short of detailing what those additional “layers” could entail.

The comments leave open the possibility of further developments around the Super-Onefollowing its Australian introduction, although Honda has made no confirmation regarding additional variants, special editions or specification changes.

Beyond its styling and equipment, Honda believes the driving experience will be crucial in convincing buyers to consider the Super-One against less expensive rivals.

“When we get our customers to the test drive, more often than not, we win,” said Mr Joseph of the Honda range more broadly.

“If we’re on that short list of consideration, if we’re in that final two or three cars that people are considering, once they drive the Honda, we’re fine.

“So, we just have to drive them to that Honda.”

Honda is also leaning on its established Australian presence as a point of difference against newer brands entering the market, arguing that the ownership experience extends beyond the equipment offered when the vehicle is new.

The Japanese manufacturer has operated in Australia for almost six decades and says its existing parts, servicing and dealer infrastructure will form an important part of its pitch to EV customers – especially those considering newly-entered Chinese rivals.

“In this industry, you’ve got to be able to respond when things go wrong,” said Mr Thorp.

“And for us, we’ve been here for almost 60 years. We’ve got a parts warehouse in Melbourne where you can get pretty much any part into the country by the next day.

“We’ve got 20,000 lines that are sitting there, a pretty efficient and well-oiled machine in terms of supporting customers and our network when things go wrong. I think that actually counts.”

Honda Australia conceded that message can be difficult to communicate when buyers are confronted with aggressively priced rivals offering attention-grabbing technology and specification.

“It might get a little bit drowned out by the big screen and something that’s bright and shiny, but over the journey, you know, that’s where the ownership experience and where Honda does a very good job is looking after customers,” said Mr Thorp.

He said Honda Australia is also increasing its marketing expenditure as it attempts to put the Super-One – and its broader model range – in front of more Australian buyers.

“We are consistently investing more in marketing over the last two years than we have over the last five, 10 years,” he added.

For the Super-One, that investment will be tasked with converting the considerable attention generated by its unconventional appearance into sustained sales after the initial launch excitement subsides.

But with almost half its expected first-year volume apparently spoken for before customers have even been able to test drive the car, Honda believes its first Australian EV may have already outgrown the niche role originally envisaged for it.