Honda Korea Co. is making a concerted effort to revive its sales, which have dropped by nearly 70% in the January-August period compared to the year before, by expanding its product range. In addition to the Odyssey minivan and the 1.5-liter turbocharged CR-V SUV, two all-new models have been launched — the 3.5-liter gasoline-powered Pilot and the 2.0-liter gasoline hybrid CR-V SUVs — with the Accord gasoline hybrid sedan set to be added to the lineup next month.
The company is hoping that the new models will be able to turn around its poor performance in South Korea, which has lagged behind its Japanese counterparts. Honda Korea’s vehicle sales dropped to 709 units in the first eight months of the year, while Toyota Motor Korea Corp. reported a 27% increase to 5,333 units and Lexus’ sales more than doubled from 4,062 to 9,129.
In an attempt to compete with other foreign carmakers, Honda opened its online platform in April and adopted the “one-price policy” for all of its vehicles sold in Korea. Tesla Inc. began to sell its vehicles through an online platform in 2017 and the move has been met with positive feedback from young customers.
Hyundai Motor Co., Renault Korea Motors and GM Korea Co. have also adopted the online platform to gain a bigger share in the Korean automobile market. The strained diplomatic relations between South Korea and Japan, due to Tokyo’s export curbs in 2019, have also contributed to the downturn in sales.