[On Seat 33] ‘999 Million Reasons to Elevate the Honda Civic e:HEV RS Above the C-Segment Sedan Fray, Entering the Realm of Fun-to-Drive Machines Like the Jimny’

Today, we have with us expert Quang Anh, who will be discussing with host Đăng Việt about the opportunities and challenges of the Honda Civic e:HEV RS.

At the Vietnam Motor Show 2024 (VMS 2024), Honda unveiled the upgraded Civic 2024. The highlight was the Civic e:HEV RS hybrid model, which garnered a lot of attention. However, the actual sales of the Civic have not been high. So, what does this addition mean for the brand?

I believe that Honda’s main objective with the Civic e:HEV RS is to create a buzz and generate interest, rather than solely focusing on sales figures.

There are three main reasons behind the introduction of the Honda Civic e:HEV RS.

Firstly, the success of the CR-V e:HEV RS in the Vietnamese market. This hybrid SUV captured an impressive 18% market share, prompting Honda to bring the Civic e:HEV RS with its hybrid engine for a test run. This move clearly showcases their hybrid strategy for the local market.

Secondly, it demonstrates the technological direction of Japanese automakers. Major Japanese brands in Vietnam, such as Toyota, Honda, Mitsubishi, and Subaru, have been quick to adapt, introducing a range of hybrid models. I believe these companies will leverage their strengths and confidence in electrification.

Lastly, it’s a business opportunity. The addition of the Civic e:HEV expands the Civic lineup, increasing its competitiveness in the C-segment sedan category. This segment has been on a downward trend, affecting direct rivals such as the Mazda3, Kia K3, and Hyundai Elantra. Honda has a great opportunity to surpass its competitors, especially the Hyundai Elantra.

What specific opportunities does the Honda Civic e:HEV RS present, in your opinion?

The biggest opportunity lies in capturing market share from its direct competitor in the C-segment, the Hyundai Elantra. These two models target a similar group of customers who value speed, performance, and customization. The Elantra, launched in October 2022, has an older design and hasn’t received an upgrade, causing a recent dip in sales. This presents a perfect opportunity for the Civic to overtake its rival.

Additionally, the 2024 Civic can gain an edge over competitors like the Mazda3 and Kia K3, which require more time to establish themselves. These CKD models have a price advantage due to lower production costs and tax incentives. The Civic, being an imported model, needs to prove its worth over time.

Along with the opportunities, what challenges do you foresee for the Honda Civic 2024, especially the Civic e:HEV RS model?

I believe the challenges for the Civic e:HEV RS are similar to those faced by the gasoline-powered Civic.

Firstly, as an imported model, the Civic e:HEV RS has a higher price tag and doesn’t benefit from the government’s reduced registration fee policy.

Secondly, customers expect a vehicle with appropriate features and specifications. While the Civic e:HEV RS has been upgraded with a powerful 200 horsepower engine, advanced safety features, and improved comfort, there’s still a sense that something is missing to truly satisfy consumers.

Last year, Honda sold the Civic Type R with a manual transmission, creating a frenzy among enthusiasts despite its threefold price. This indicates that Honda Vietnam should aim to create a similar excitement with the Civic e:HEV RS, offering a configuration that satisfies multiple aspects of consumer demands. I believe this is a strategic move by Honda, and if they succeed, we can expect more upgraded versions at more affordable price points in the future.

By doing so, Honda Civic can create a new segment for enthusiast-oriented vehicles, similar to what Suzuki did with the Jimny. This would separate the Civic e:HEV RS from the standard sedan category. It’s a long-term strategy that Honda Vietnam is likely considering.

The Honda Civic e:HEV is priced at 999 million VND. What are your thoughts on this pricing strategy?

This price point is a deliberate move by Honda Vietnam. By setting the price above the C-segment, they are positioning the Civic e:HEV RS as a premium offering. Previously, the Toyota Corolla Altis HEV was the only hybrid model in this segment, but it didn’t carry such a high price tag.

As mentioned earlier, Honda may be considering positioning the Civic e:HEV RS, and the Civic lineup in general, as enthusiast-oriented vehicles. A higher price can instill a sense of pride in owners, as it signifies a passionate choice rather than a purely practical one.

From your perspective, what suggestions would you give to Honda Vietnam to truly establish the Civic e:HEV as a desirable vehicle, despite the higher price tag?

I believe Honda Vietnam has faith in the Civic’s success. If they want to create a unique position for this model, they could introduce new versions that resemble the Type R. The Type R’s global acclaim, not just in Vietnam, is undeniable.

To achieve this, Honda Vietnam could consider a hybrid engine, automatic transmission, and exciting performance-enhancing features, all while offering a more attractive price compared to the manual Type R.

On Vietnamese social media, Honda Civic is often associated with memes comparing it to Porsche, with the phrase “gõ Porsche” (knocking on Porsche’s door). In your opinion, is this positive or negative, and how does it impact the brand?

As a media professional, I don’t think these memes significantly affect the Civic’s sales performance. The numbers speak for themselves, and regardless of the lighthearted comparisons, Civic’s sales have remained relatively stable. This year, it has even reached a market share of almost 10% in its segment, despite an overall downward trend in C-segment sales. So, I believe these memes are more for entertainment and don’t carry a strongly positive or negative impact on Civic’s business.

To quote Steve Jobs, “stay hungry, stay foolish.” Let’s embrace the fun and lightheartedness of these comparisons. True automotive enthusiasts understand the capabilities of the Civic and whether it truly “knocks on Porsche’s door.” However, we can always dream, and who knows, maybe one day the Civic Type R will give Porsche a run for its money.

Thank you for your valuable insights.