The fuel-sipping Honda Accord hybrid is now more expensive from July 1, broadening the gap between petrol and hybrid versions.
The price of the 2022 Honda Accord hybrid has increased by $1500, in what is the first substantial price increase for an existing Honda vehicle since the company switched to an ‘agency’ business model 12 months ago.
In effect in Honda Centres from July 1, the Accord VTi-LX Hybrid sedan has increased by $1500 to $61,900 drive-away – which Drive understands is a result of increased industry-wide supply chain costs (production, materials and logistics), rather than standard feature changes.
The 1.5-litre petrol-only version of Honda’s mid-size sedan is unaffected by the price hike, remaining at $57,400 drive-away – meaning the difference between petrol to hybrid Accord variants expands from $3000 to $4500.
The Accord hybrid’s cost increase represents the first significant price rise to an existing Honda model since the company switched to an ‘agency’ business model on 1 July 2021, offering fixed drive-away pricing.
The Honda CR-V mid-size SUV has increased by between $300 and $500 over the last 12 months, depending on variant – though competitors, including the Toyota RAV4, Hyundai Tucson and Ford Escape, have also increased in price by similar (or greater) amounts over the same period.
Honda’s newest models – the Civic and HR-V – have seen significant price hikes of up to $7600 (when comparing equivalent model grades) with the arrival of new generations – though these are also associated with new platforms, technologies, features and engines.
However, it’s worth noting the price of the Accord Hybrid has increased significantly since the current-generation model’s launch in late 2019, from $50,490 plus on-road costs (or about $55,000 drive-away) at launch, to $61,900 drive-away.
That represents an increase of about $7000, with no additional standard features – though the 2021 agency model switch introduced a five-year warranty, five years of roadside assistance, a five-year capped-price servicing plan, and metallic paint into the base vehicle price.
The COVID-19 pandemic has also caused havoc on global supply chains over the last two and a half years, forcing all manufacturers to increase their prices to varying extents.
As forecasted by Honda Australia at launch, the Accord is a niche player in the mainstream mid-size passenger car sales race, with 39 sold so far in 2022 – accounting for 0.6 per cent of the segment.
The category is dominated by the Toyota Camry – also available with a hybrid powertrain – with 70 per cent market share. Honda Accords represent 1.9 per cent of all mainstream mid-size sedans/wagons sold without a Toyota badge.
2022 Honda Accord Australian pricing
- Accord VTi-LX petrol – $57,400 drive-away
- Accord VTi-LX hybrid – $61,900 drive-away (up $1500)
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