Honda appears to be building up a case for a sub-compact SUV that will sit below the HR-V, according to a report by GoAuto. Stephen Collins, director of Honda Australia foresees that such a vehicle – a smaller SUV than the HR-V – will be the next top segment in Australia.

As for the reason behind why a smaller SUV could be developed, the answer lies in the HR-V’s dimensions, which are similar to the Nissan Qashqai SUV. This in turn, allows for some space in which a sub-compact SUV can be slotted in. “I’m sure you know there is a BR-V which is a Brio-based SUV. It’s primarily made for emerging markets, so at this stage it is not in our (Australian) plans,” he said.

Moreover, the BR-V’s dimensions are also too similar to the HR-V, which doesn’t make it a viable candidate as a sub-compact SUV, noted Honda Australia’s product coordination manager, Atsushi Takaoka. “Basically, we are investigating it. So we need to investigate it more and more. But, there may be some possibility,” Takaoka said.

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Meanwhile, Collins also mentioned that the next-generation CR-V will focus mainly on technology, while a third row could be a possibility. As there are no plans to introduce the larger Honda Pilot in Australia, the next-gen CR-V would fill the gap of a seven-seater SUV.

“I think we are looking at everything. I think engine technology is an important point that we are looking very closely at. We are looking at how can we expand opportunities more into the lower end of the larger SUVs and the seven-seat question comes up. So we are exploring all of those opportunities,” he explained.

On the other hand, Collins disclosed that the shift from sedan and wagons to SUV is significant. It has come to a point where the Accord has turned into a challenge in terms of sales. The director even went to the extent to label that segment as a “worry.”

“Accord is low volume for us, it’s under 100 (units) a month, the segment is going down. It is tough work. We think Accord still has a role, we have a model change happening in a month or so. It is not a full model change, it is a mid-life change with some significant upgrades,” he revealed.