Honda officials expect the new CR-V to overtake its perennial best-selling vehicles, the Civic and Accord, in the near future.
They’ve long dominated the sales charts, but the Honda Civic and Accord models may soon get brushed aside – by another Honda model, it seems, as the Japanese automaker expects to see the fifth-generation remake of the CR-V crossover-utility vehicle become its top volume model.
That shouldn’t really be much of a surprise, however, considering current industry trends. Light trucks, in general, now account for about 60% of the U.S. new car market, and while pickup sales are flattening out, CUVs and more traditional sport-utility vehicles “are really hot,” said American Honda Motor Co.’s top U.S. executive, John Mendel.
Even as it comes to the end of its life, the outgoing, fourth-generation Honda CR-V is accounting for about a quarter of the brand’s total U.S. sales and is “now virtually on par with Civic and Accord,” and likely to build momentum with the launch of the new model for 2017.
Honda took the wraps off the new CR-V remake during a media sneak peek at Detroit’s Eastern Market on Wednesday.
(The 2017 Honda CR-V is now off embargo. Click Here to check it out.)
The new model is longer, wider, roomier and equipped with a range of new features, including the updated Honda Sense package of electronic safety technologies. There’s now a volume knob for the audio system – a topic of frequent debate. The new model adds two new engines, including the first CR-V turbo, a 1.5-liter inline-four shared with the Civic.
Honda's best seller, the Accord, is likely to come second to the CR-V in the near future.
The outgoing model has remained a strong seller even as it approaches the end of its lifecycle. There was a short run, from late 2014 into 2015, when it outsold the Civic and Accord. That has happened, on and off, in recent months. For all of 2015, sales of the crossover approached 350,000, falling just short of number one in the line-up. And now, Mendel and other executives believe CR-V will pass the other two Honda models, even as the latest Civic also bucks industry trends and gains sales.
To keep up with the expected demand, Honda now has outfitted three factories to roll out the CR-V for the local market, two in the U.S., the third in Canada.
“We didn’t make this investment to go down in sales,” said Jeff Conrad, the head of the Honda brand, following the unveiling of the new 2017 CR-V.
(Nation’s fuel economy continues to drop. For more, Click Here.)
Honda isn’t the only automaker seeing a major shift in its model hierarchy. Toyota officials have said there’s a good chance that the RAV4 will soon be their best-seller, the CR-V competitor rapidly overtaking traditional Toyota stalwarts Camry and Corolla.
The same trend is the case across the industry. And while CUVs and SUVs are hot in just about every segment, the real momentum is occurring in smaller segments, especially compacts like the CR-V.
Sales of the Toyota RAV4 are up this year and, like Honda officials, Toyota executives predict it will over take the Camry and Corolla.
Whether that trend will continue is far from certain. Historically, demand for utility vehicles – like pickups – has been especially sensitive to fuel prices. With gas running just over $2 a gallon, on average, nationwide, demand is solid. But what will happen if the price surges back up to $3, even $4?
Industry analysts like David Sullivan, of AutoPacific Inc., have told TheDetroitBureau.com that smaller utes will likely retain momentum because they have largely closed the mileage gap with similarly sized passenger vehicles. Final EPA numbers for the 2017 Honda CR-V won’t be released until close to the December on-sale date, but the maker hints it will improve on the current 33 mpg highway rating.
“We expect to be leading this category,” said Conrad.
(To see more about the tough test coming for carmakers, Click Here.)
The biggest challenge to the 2017 CR-V will be the flood of new crossovers hitting market. Everyone from entry-level brands to the most luxurious marques are planning new entries. And there are new brands intent on seizing their opportunities. Tesla has suggested it will pair the big Model X crossover it launched last year with a smaller model sharing platforms with the mainstream Model 3 sedan. Meanwhile, Korea’s Ssangyong hopes to enter the U.S. with a pair of small utes over the next few years.