Honda sees ‘one-two punch' in HR-V, Civic

For decades, Honda's popular Civic has been the model that draws young buyers into the brand and moves them into larger, more expensive products over the years.

Honda's second-generation HR-V subcompact crossover will step up to share that critical gateway role with the Civic at a time when Civics are in short supply because of industrywide supply chain problems.

The 2023 HR-V has grown in size and leveled up in terms of style, driving dynamics and technology. Honda said the small crossover will be central to the brand capturing the attention of young buyers, and it will help the brand reach deeper into markets where the compact sedan is scarce.

"Civic is almost like a brand itself, and it does so much for Honda," Mike Kistemaker, assistant vice president for Honda sales at American Honda Motor Co., told Automotive News.

But as successful as the Civic is, Kistemaker said, its sales are stronger in metropolitan markets such as Miami, Los Angeles and Phoenix.

"HR-V is newer in the Honda mix, but it's a little more durable and has all-wheel drive," he said. "It will be strong in markets like Seattle, Denver and Portland, where Civic has a hard time competing.

"It'll definitely be a solid player against the likes of Subaru."

Kistemaker said the Civic and HR-V will work as a "one-two punch for getting customers to the brand."

Honda anticipates that in addition to attracting buyers, the HR-V will serve as a gateway to the larger CR-V compact crossover, which has a forthcoming redesign and hybrid variant.

"HR-V gets people in who maybe can't afford a CR-V to start with an HR-V and move up to a CR-V or CR-V Hybrid," Kistemaker said.

"Before we just had Civic, and now we've got this winner that will move you right into a CR-V Hybrid and prepare us for BEV and electrified product."

The HR-V looks to build on the styling of the 11th-generation Civic and represents Honda's new design direction. The two vehicles share longer hoods, sleek fastback rooflines and clean, muscular profiles. The HR-V also sports a larger upright grille now seen across the Honda light-truck lineup.

The HR-V has had "incredible performance for first-time buyers, including more 25-year-olds than any other model in the segment," said Ed Beadle, American Honda vice president of marketing and customer experience, noting that the current generation of the subcompact crossover has tallied 15 months of record sales.

From January through May, HR-V sales were up 23 percent, topping 67,200, according to the Automotive News Research & Data Center, and the vehicle has been the standout for the brand as it continues to get past the industrywide microchip shortage and other logistical challenges.

The simplified HR-V menu of three trims is intended to appeal to younger buyers, with its midrange Sport expected to be the volume seller.

"Sport is the one for the money that really reaches everybody, has great looks, tons of content, tons of features," Kistemaker said. "I think that one will continue to grow and get those younger buyers and customers."

Pricing for the HR-V Sport, with front-wheel drive, starts at $26,895, including shipping. Awd costs an extra $1,500.

The Civic Sport has been popular among new buyers as well, accounting for half of total Civic sales between the sedan and hatchback body styles.

"With Civic, immediately, the Sport was a huge hit, having the wheels and the better look in the lines. Civic Sport was just by far the hottest demand, and I'm sure we'll see a similar pattern with HR-V," Kistemaker said.

Pricing for the Civic sedan starts at $25,845 including shipping.

The HR-V will also offer two years of complimentary maintenance, a program the Civic will also offer starting with its 2023 model year. The program is attractive to younger buyers "because they don't have to go in and track down an appointment or try to go somewhere and get an oil change," he said.

Honda also plans to invest in more youth-oriented marketing for the HR-V, a strategy reserved for the Civic in the past, Beadle said, with digital marketing the primary driver for the younger demographic.

That will include a focus on gaming and esports — competitive gaming at a professional level in an organized format. According to gaming data firm Newzoo, the global esports audience will reach 532 million players by the end of this year.

To capitalize on the attention of gaming spectators, Honda entered into a naming-rights deal with the gaming organization Team Liquid. For the League of Legends tournament this summer, the team will go by "Team Liquid Honda," and each player will wear Honda-branded jerseys. Players and coaches will also drive HR-Vs and Civics, putting the nameplates in front of the captive and engaged audience.

One issue that is not clear yet is where the HR-V fits into Honda's all-electric future. The Civic will add a hybrid variant this year, and the brand intends to convert 500,000 of its sales in North America from gasoline to electric by 2030, but Honda is not saying how the HR-V will play a role.