Cars

Revolutionary Honda: Controversial Agency Sales Strategy Here to Stay in Australia

Published

5 months ago

November 5, 2025

Honda here to stay in Australia, sticking with controversial 'agency' sales strategy

Honda says it’s here to stay in Australia, with a panel of global executives standing firm on the Japanese brand’s commitment Down Under.

“Currently we’re building our business there, so we’re in a building phase,” Honda Australia CEO Jay Joseph said in an executive roundtable conference.

“Of course, we all know five years ago we changed our business model and we also made decisions about our lineup that dramatically affected volume. But we’re now poised to be in a much stronger position, and we’re beginning to grow that share back.

“I’m certainly committed to continuing that during my time [at Honda Australia], and I’m definitely feeling high expectations from everybody at this [executive table] to continue that trajectory.”

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Toshio Kuwahara, president and CEO for Asian Honda Motor Co, added that Mr Joseph’s appointment to the helm of Honda Australia is also a clear indication of the brand’s commitment to the Australian market.

“Jay has actually had a very long experience running our business in the United States, and has experienced many aspects of our business [in that region],” Mr Kuwahara said via interpreter.

“So the mere fact that Jay has been serving this position of president of [Honda Australia] starting in April this year actually, I would say, testifies to our commitment to Australia, and that we will continue to be there.”

In a follow-up interview with CarExpert, Mr Joseph said now that Honda Australia’s revised business model has settled – now that it has switched from a traditional dealer franchise model to an agency sales one – the brand is making “steady gains”.

“When we measure on our fiscal year – which is April 1 to March 31 – I think our sales will be up 20 per cent this year compared to the prior year, and if you look on a calendar year basis it’s a little less than that – we’ll be over 15,000 for calendar year 2025, which is… more than 10 per cent over 2024.

“So we’re making steady gains, and we like to make steady gains. Steady is sustainable, big jumps can be disruptive to the system, disruptive to the network, and hard to sustain. We like to know cause and effect – ‘what did we do that worked?’, ‘what did we do that didn’t work?’ [We want to] repeat the good stuff, wash out the bad stuff.”

Mr Joseph then appeared to take a swipe at the Australian Automotive Dealer Association (AADA) for its criticism of the agency sales model, which Honda’s local CEO claims has only been a good thing for the brand’s network.

“I was at [the] AADA, and they invested a fair amount of energy into talking about how bad the agency model is, which I thought was interesting because in the Honda dealers in Australia that I’ve spoken with, none seem to have a problem with the agency model,” Mr Joseph continued.

“They like the predictability of it, the way we’ve structured things. The more cars they sell, the more money they make – that’s good for dealers, it’s good for business. So it’s funny that there’s criticism about the agency model, except for those working within it.

“Most importantly, it’s about protecting the consumer.

The agency model, which involves owning the inventory and having authorized agents sell each car individually, allows us to safeguard consumers’ investments. This model, also known as the business model for selling cars in Australia, includes a ‘Price Promise’ that ensures fixed pricing and eliminates the need for haggling. Consumer attitudes towards fixed pricing have shifted since the COVID-19 pandemic, with customers willing to pay above retail price knowing they are getting the best deal available due to supply shortages.

Sales consultants appreciate the agency model as it allows them to focus on promoting the vehicle’s qualities and values rather than negotiating prices. In addition to fixed pricing, the model offers low-price service, five years of roadside assistance, and a five-year warranty, providing customers with a cost-effective and pleasant ownership experience. This value proposition has helped Honda Australia establish a sustainable business and create a more favorable car buying process for consumers.

Honda Australia transitioned to an agency sales model in 2021, resulting in fixed national drive-away pricing. While the brand initially experienced a decline in sales, there has been a gradual recovery in recent years. The company is on track to exceed 15,000 units sold in 2025, with further growth projected for 2026.

Looking ahead, Honda plans to introduce a range of e:HEV hybrid versions of popular models, such as the CR-V and ZR-V SUVs, as well as the relaunch of the Prelude sports coupe and the brand’s first all-electric vehicle in Australia, the Super-One hatchback. The company’s CEO has hinted at additional product launches to enhance the local lineup, including the potential introduction of the 0 Series range of EVs. While these vehicles may not be available in overseas markets until 2027, Honda remains committed to expanding its offerings in Australia.

For more information on Honda’s latest models and offerings, visit the Honda showroom. Transform the following:

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Transformed: “I will be heading to the store to purchase groceries.”