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← Newsroom/EVs & hybrids

Honda hikes service prices by 40 per cent, but spares Super-One EV

Compiled by ADME Newsroom from 1 source

First reported by CarExpert · 14 October at 8:00 am

Who's covering this — 1 article

Motoring press: 1

Image: CarExpert

The quick read

Honda has increased capped-price service costs for new petrol and hybrid vehicles by 40 per cent.
The Super-One EV is exempt from the price hike.
The move may impact showroom traffic and sales of petrol and hybrid vehicles.
Competitors may respond by maintaining or reducing their servicing costs.

For dealers: Australian dealers need to be aware of the potential impact of Honda's price hike on their sales and inventory management strategies.

AI-assisted summary of the coverage below — check the original reporting before relying on specifics.

ADME commentary

The ADME angle

Honda's decision to hike service prices by 40 per cent for new petrol and hybrid vehicles, while exempting the Super-One EV, will lead to a significant increase in the total cost of ownership for customers who purchase these vehicles.

This move is likely to impact showroom traffic, as customers who are sensitive to servicing costs may be deterred from purchasing petrol and hybrid vehicles from Honda.

The exemption of the Super-One EV from the price hike suggests that Honda is attempting to make its electric vehicle more competitive in the market, potentially attracting customers who are looking for a more affordable servicing option.

What it means for the order bank

The price hike may lead to a decrease in sales of petrol and hybrid vehicles, which could result in a surplus of these models in the order bank, potentially forcing dealers to offer discounts or incentives to clear stock.

Competitor response

Competitors such as Toyota and Hyundai may respond to Honda's price hike by maintaining or reducing their servicing costs, making their vehicles more attractive to price-sensitive customers.

Dealers who are prepared to offer competitive servicing options and transparent pricing may be able to capitalize on the situation and attract customers away from Honda.

Pricing and margin

Dealers should review their pricing and margin structures to ensure they are competitive and can absorb any potential losses resulting from the price hike, while also considering the potential benefits of promoting the Super-One EV.

One decisive action a dealer could take this week is to review their inventory and pricing strategies for Honda vehicles and consider offering special promotions or discounts on the Super-One EV to capitalize on its competitive servicing costs.

Go deeper — ADME analysis