To say Honda’s position in the Philippine market is getting shaken up is an understatement. The brand that once led the passenger car segment 25 years ago is finding its place in the market under threat.

Their models are consistently priced at a premium over fellow Japanese rivals, there are no plug-in hybrids that the market wants, and the influx of Chinese models that exploit Honda’s weakness in the previous two aspects are causing a significant drop in their market share and overall sales numbers.

Honda needs something to revitalize them in the Philippines and also in the region. The same thing happening in the Philippine market is also happening elsewhere. Perhaps the upcoming Avancier can help them along.

According to our very reliable insider, Honda is planning to start introducing the Avancier in the region, beginning with Thailand where they also plan to produce it. Yes, there have been plenty of rumors before, but our contact tends to be very reliable given our history with the information we have received and published before.

If the nameplate is unfamiliar, it’s because Avancier is not sold outside of China where it is known as the (Dongfeng) Honda Avancier and as the (Guangqi) Honda UR-V. It is a 5-seater midsize SUV that, in true Chinese fashion, focuses on second row space instead of trying to squeeze in 7 people in three rows.

The Avancier/UR-V, however, is an aging model already that has been in production in China since 2017. It has also undergone a facelift in 2020 and another in 2023. The age of the model lends us to think that they may be looking at a yet-to-be-revealed new generation model. The word we are getting from other insiders and colleagues is that the vehicle will come with the e:HEV hybrid system that we have experienced in the Civic, HR-V and CR-V. Details, however, are still scarce.

We were also informed that the new Avancier/UR-V will start production in Thailand in early 2027 for local sale, but it brings up an interesting question: if Honda does export from there, does it make sense to export to the Philippines? 

The rationale for many carmakers to set up production in Thailand is to get past the exceedingly high import tariffs there (Thailand is difficult territory for imported cars, unlike us) and also because it will primarily for right-hand drive. As we know, the Philippines and Vietnam are the left-hand drive minorities in South East Asia. It might not make sense for Honda to set up left-hand drive assembly there for export when China already does that at scale.

So if Honda does export the Avancier/UR-V for the Philippines, the sourcing that makes financial sense is China and not Thailand. And if so, why not do it sooner?

Even then, an upscale and upmarket model from China for Honda will not be a volume model. What is really needed is an affordable model with hybrid (especially plug in hybrid) technology. And right now, the cheapest Honda hybrid available in the Philippines is the Honda HR-V e:HEV at PHP 1.799 million. That pretty much says it all.