Why was the Honda URV discontinued?
4 Answers
Honda URV discontinued for the following reasons: 1. The price positioning is higher than the product level. The Honda URV has a relatively high price, exceeding that of general models in the same class, but its product quality does not match its price. As a mid-size SUV, the Honda URV's space performance is not outstanding enough, and its configuration richness is slightly lower than that of competing models in the same class. 2. Competing models in the same class have advantages in price and configuration, causing the Honda URV to lose competitiveness. The Honda URV's similar model is the Honda Avancier, which is similar in body size and other aspects to the Honda URV but has a lower selling price, resulting in higher sales than the Honda URV. Compared to other mid-size SUVs in the same class, the Honda URV still does not have an advantage in price and configuration. 3. It is about to undergo a model update or upgrade. Currently, only the 2020 model of the Honda URV is available for sale. Honda Motor Company will upgrade the Honda URV and is expected to launch the 2021 Honda URV.
The discontinuation of the Honda UR-V is mainly due to sales issues, as I've discussed with friends around me. In recent years, the SUV market competition has been extremely fierce. Honda itself has popular models like the CR-V and Avancier stealing the spotlight, while the UR-V, positioned at a higher end, lacks standout features, leading to poor sales. Consumers are shifting towards compact SUVs or pure electric vehicles, such as the more economical BYD Song series. Honda likely considers the production of the UR-V to be too low in profitability, and resources would be better invested in new models, like their electric series. Global supply chain issues also play a role; during chip shortages, priority is given to hot-selling models. Overall, as the model's lifecycle comes to an end, manufacturers naturally phase out older products to align with trends, which is beneficial for long-term development.
The discontinuation of the UR-V, from my observation of automotive trends, is largely due to product updates. Honda is continuously optimizing its platform technology, and the older UR-V, with its outdated chassis and traditional systems, fails to meet the latest safety and environmental standards. Market demand has shifted, with consumers now favoring hybrid or pure-electric SUVs. Honda is focusing on its electrification strategy, allocating resources to models like the e:NS1 and future vehicles, naturally phasing out older models. Additionally, with competitors like the Toyota Highlander upgrading rapidly, the UR-V's sales have been sluggish, making its discontinuation a logical decision. Such adjustments by manufacturers help maintain vitality and drive innovation.
I believe the main reason for the discontinuation of the Honda UR-V is economic factors. The production costs are too high, especially with rising material and labor costs, while this model has low sales and thin profit margins. Honda needs to cut expenses and focus its production capacity on best-selling models like the CR-V to achieve economies of scale. The market competition is intense, and consumer preferences lean toward smaller-displacement SUVs. The UR-V's large size and high fuel consumption make it difficult to sell well. The discontinuation is also a response to market changes, reducing waste. In the long run, it benefits the brand.
