Sedans still have future at Honda as rivals bail on segment

Honda still sees plenty of room for growth in the sedan segment.

While some manufacturers have moved away from the space, Honda is forging ahead with the redesigned Accord midsize that went into production this month and the 11th-generation Civic compact, which arrived in 2021. A Civic hybrid is scheduled to go on sale in 2024.

Dealers have "asked us to make sure that we continue to focus on those sedan segments, the Accord as well as the Civic," Lance Woelfer, assistant vice president of Honda sales, told Automotive News after the brand's make meeting Saturday. "I think while our competitors may have gone in a different direction, it creates more opportunity for us to meet that demand."

The 2023 Accord offers four conventional hybrid trims that Honda expects to make up half of the sedan's sales. Hybrid models accounted for 13 percent of Accord sales in 2021.

Woelfer said the Accord is filled with new technology, such as an infotainment system with built-in Google apps. It's the first time Google has been integrated into a Honda vehicle. The setup features Google Assistant, Google Maps and Google Play.

Honda has battled through parts and supply constraints that have taken a toll on its highest-volume vehicles.

Woelfer expects inventory to move quickly in 2023, even as the automaker builds more vehicles. Honda has said it projects its sales to increase about 25 percent this year.

"The dealers have a lot of capability for throughput, and even as we increase production, their inventory may still not be at levels we used to see," Woelfer said.

Woelfer added that Honda is focusing on "improved throughput at the dealership level so that they're turning that inventory on a quick basis, but they have a supply that allows them to meet customer demand and do it effectively."