Honda Australia stands by agency model despite sales slide

AutoExec Summary
Honda Australia’s switch to non-negotiable pricing in mid-2021 led to a significant drop in sales, but the carmaker insists the approach is successful. The agency model and fixed pricing resulted in the brand’s lowest sales figures on record, but a recent 18.9% increase in sales in the first quarter of 2024 has been attributed to the introduction of the ZR-V SUV. Despite criticism, Honda remains committed to the fixed price model, aiming to support its dealers and adapt to industry challenges. Mercedes-Benz also adopted a similar model in 2022, experiencing a decline in sales.

Brands mentioned: Honda, Mercedes-Benz