15 July 2018

Honda is confident it can clear its full level of non-WLTP compliant vehicles by the time the ultimate deadline passes but warns that volume brands might struggle.

Manufacturers can derogate the equivalent of 10% of their 2017 sales figures and with Honda registering 53,901 cars in 2017, it can defer the deadline for 5,390 cars to the end of August 2019 although all other NEDC tested vehicles must be sold by the end of this August.

Honda’s Head of cars, Phil Webb, told Auto Retail Agenda that he is confident of being able to clear the backlog in plenty of time, saying: “Our stock levels are very healthy.  We will derogate some cars, which means you get an extra 12 months to sell the car.”

In terms of the number of vehicles for which he expects to have to apply for an extension, he said: “We will be under 5,000 and will clear that in 12 months” but warned that some volume brands could struggle, adding: “We are not a big player in volume terms so you can imagine that some of the bigger ones have quite a job to do.”

He also said that the brand is aiming to improve its renewal rates, with the hope being to replicate the Jazz’s loyal customer base across the range.

“It differs from model to model, but the renewal rate ranges from about 35 to 45% so we are about average.  I don’t want to be average. We would like to be on 45% across the board to start with. If you think of the PCP journey that we are now at, there is no reason that in the next 18 months we shouldn’t start looking at that.”

Tags: Honda, Phil Webb, WLTP