N-BOX Reclaims the “Top Sales Position” in the Ranking System Report
Why was the Yaris overtaken by the Toyota Yaris?
How did the Yaris become “No. 1?”
Looking back at new vehicle sales in Japan in the fiscal year 2021 (April 2021 to March 2022), the Honda N-BOX (191,534 units) and the Toyota Yaris (191,414 units) are said to have ranked first and second, respectively. By a difference of only 120 units, the N-BOX ranked first in new vehicle sales in Japan in FY2021.
Looking back at the sales statistics by year to date, the N-BOX was No. 1 from FY 2017 to FY 2019, when the N-BOX was fully remodeled into the current model.
In FY2020, however, the N-BOX (197,900 units) lost the top spot to the Yaris (202,652 units). In FY2021, however, the N-BOX returned to No. 1.
This is the sequence of events that has been widely reported, but there is a major oversight. That is that the number of Yaris registrations announced by the Japan Automobile Dealers Association (JADA) is the total of the Yaris compact car + Yaris Cross SUV + GR Yaris sports model.
In the perception of car buyers, the Yaris and the Yaris Cross are two different models. The Yaris’ rivals are the compact car Honda Fit and Nissan Note, while the Yaris Cross’ rivals are the compact SUV Honda Vezel and Nissan Kicks.
In other words, calculating the “Yaris” by combining the Yaris compact car and the Yaris Cross compact SUV is, from the user’s point of view, like adding up the Honda Fit and the Vezel. Since sales statistics are published “by street name, “they are summed as the Yaris series, and users can see some figures that are not quite right.
Other models include the Corolla, which includes the three-number Corolla sedan + wagon Corolla Touring + five-door hatchback Corolla Sport + the five-number Corolla Axio, and Corolla Fielder, which are still in production. The number of registered Notes also includes the high-end Note Aura.
Reported volume “is not a useful reference
The same is true for the number of mini vehicles reported by the Japan Mini Vehicles Association. The Daihatsu Move includes the Move Canvas, the Suzuki Wagon R includes the Wagon R Smile, and the Suzuki Alto includes the Altrapan.
In addition to these, Subaru XV registrations are included in the Impreza. The former name of the vehicle was the Impreza XV, and the XV body is still shared with the Impreza Sport. The number of “Impreza” registrations is the Impreza Sport (hatchback) ) + G4 (sedan) + XV (SUV).
As mentioned above, it is important to note that the number of registrations of compact / ordinary cars and the number of notifications of mini cars may not be helpful when choosing a car.
Returning to the Yaris, the compact car Yaris accounted for about 45% of the total number of registrations in the series as “Yaris.” The Yaris Cross, a compact SUV, also accounted for around 45%, with the GR Yaris, a sports model , accounting for the remaining 10%.
Then in FY2020, the Yaris series registered 202,652 units, taking the top domestic sales position from the N-BOX, which reported 197,900 units, but if the Yaris and Yaris Cross are split, the N-BOX was by far the most popular model.
The same is true for FY2021. Both the Yaris and N-BOX were slightly ahead of the N-BOX by a little over 190,000 units, but if the Yaris and Yaris crosses are split, the Yaris and N-BOX would each drop to around 85,000 units. As described above, in recent years, the N-BOX has been the real leader in domestic sales, regardless of the year.
Why does N-BOX remain at the top?
Why, then, has the N-BOX been able to maintain its real top position in domestic sales for so long? There are multiple reasons behind this.
First, the previous (first-generation) N-BOX, which was introduced in 2011, sold well. Looking back by a year, the previous generation N-BOX has held the No. 1 position in light car sales almost consistently since FY2012, the year after its launch, and although the previous generation Tanto took the No. 1 position in light car sales in FY2014, all other years were dominated by the N-BOX.
Because of the strong sales of the previous generation N-BOX, the current model, which was introduced in 2017, was able to spend even more on development and manufacturing costs while following the lines of its predecessor.
As a result, the current N-BOX has a higher-quality interior and exterior, and the noise emitted by the engine and tires has been kept to a minimum. The ride quality is also high, with a quality that goes beyond that of a minicar. The overall height of the current N-BOX, even in front-wheel-drive (FWD) mode, is 1,790 mm, and the wheelbase (distance between the front and rear wheels) is 2,520 mm, making it the tallest minicar on the market. These synergistic effects make the N-BOX’s interior the widest of all minicars, while also giving it a respectable appearance.
The rear seats can be retracted with a single touch to create a large cargo area that can accommodate bicycles, allowing the N-BOX to be used as a minivan even though it is a minicar with two rows of seats. The N-BOX’s wide range of users, from those raising children to middle-aged and older adults, can use it safely and comfortably, and the second generation of the current model has seen sales increase even further.
In particular, when users of the previous generation N-BOX test drive the current model, the evolution of quality and equipment is clearly apparent. Moreover, the N-BOX is very popular in the used car market, so the previous generation model can be sold at a high price. This makes it easy to switch to the current model.
A Honda dealer explained this point as follows. The popularity of minicars is high now (minicars accounted for 38% of new car sales in Japan from January to March 2022). For this reason, many customers from other companies purchase the N-BOX. Sales are concentrated on the N-BOX because some customers are switching from the previous generation N-BOX. Since the previous generation N-BOX also sells at a high price, it is easy to propose switching to the new model, “he said.
In the most recent situation, there is also a difference in delivery time, and we asked dealers about this point as well.
“The delivery time differs depending on the model. For the Vezel, the e:HEV / Z, etc., it took about a year, and the e:HEV / PLaY took even longer, so we stopped taking orders. The delivery time for the Fit is also long, ranging from four to six months. In this respect, minicars are relatively short, and the N-BOX can be purchased within three months. The fact that people can now buy them without waiting too long is also a factor in their popularity. “
As a result, the N-BOX accounted for 35% of all new Honda cars sold in Japan in March 2022, and 53% of all mini cars, including the N-WGN.
Image of “Compact Honda
The strong sales of Honda’s minicars, including the N-BOX, have also helped to move Honda’s brand image in the direction of compactness. If compact Fit + Freed + Vezel are added to the sales of mini cars, they will account for about 90% of all new Honda cars sold in Japan in March 2022. Other Honda cars such as the Accord, Civic, and CR-V, all combined, would be put away by the remaining 10%.
Honda dealers say, “Odyssey customers are switching to Step Wagons and even smaller Freeds. We also see customers switching from the Fit and Freed to the N-BOX.” Due in part to the strong sales of the N-BOX, the downsizing of Honda cars has been rapid.
In addition, Honda’s recent model lineup has also accelerated this sales trend. The Odyssey, a high-end minivan, is no longer being produced in Japan, and the CR-V SUV will end sales at the end of 2022. The Insight will be replaced by the Civic e: HEV (hybrid), and Honda’s domestic lineup will be more biased toward compact models than before.
This downsizing of Honda’s product lineup and brand image also indicates that Honda will move closer to Suzuki and Daihatsu. This is a convenient way to sell more compact models, but what about the benefits that users will receive?
In the past, Honda offered a wide variety of sports models that were fun to drive, but going forward, these will be concentrated in the Civic and Civic Type R. The price of the Civic is above 3 million yen even with the 1.5L turbo, and the next model of the Type R will reach 5 million yen.
Then, the only Honda car with an overall length exceeding 4,400 mm that is likely to sell well is the Step Wagon. The category of Honda cars available in Japan is now narrower than before.
Honda’s “Suzuki/Daihatsu-ization” is in progress.
Honda is not happy about the fact that its vehicle mix and brand image are moving in a smaller direction, as gross profit per vehicle is also lower.
For many years, Suzuki and Daihatsu have focused on light vehicles, so everything from vehicle development and manufacturing to sales promotion and other sales-related activities can be done at a low cost. Honda, however, is different. It is too much to have the ratio of mini vehicles at much more than 50%, and it wants to keep mini vehicles at 35% or less by expanding its compact/ordinary vehicles.
As for compact/ordinary cars, we would like to consider making effective use of the limited number of best-selling models. The new Step Wagon is characterized by a relaxing and soft atmosphere, but the Air, which reflects this characteristic, cannot be equipped with a blind spot monitor to enhance safety or an ottoman to improve the comfort of the second-row seats. The Air should be positioned as the true Step Wagon grade and be offered with advanced equipment as a package option.
The Step Wagon should also be available in other variations. The Modulo X, which is more fun to drive than the Spada, and the Crosstour, an SUV-like vehicle with a water-repellent cargo area, should be added at an early stage.
Since the price of the Civic Type R is remarkably high, we would like to add a sporty grade to the Fit that is easy to understand, such as the RS or Type R. And Monroe suspension, etc., is priced at around 2 million yen. This has increased its popularity, and the Sport accounts for about 50% of Swift’s total sales.The Fit needs to have a sporty grade that is fun to drive and underpriced to rival the Swift Sport.
The N-BOX is practically the number one selling car in Japan, so its influence, good or bad, is also significant; the N-BOX will steal users of its own small cars, such as the Fit and Freed, and some within Honda have called the N-BOX a monster.
The biggest challenge for the N-BOX is how to tame it without being pulled in by the monster.
Interview and text by： Yoichiro Watanabe
Born in 1961. After working as editor-in-chief of an automotive monthly magazine for about 10 years, he became a freelance car life journalist in 2001. He believes that the most important theme is "not to cause injury or loss to readers," and tries to write articles that raise issues from the viewpoint of people who use cars. He writes not only about test drives, vehicle introductions, and mechanical descriptions, but also about pricing, grade configurations, resale value, discounts, insurance, and taxes, as well as other matters related to car life in general. He also writes about car history.
