How the small Civic became such a big seller in Canada

After two decades, it might seem as though the Honda Civic’s sales crown has never been worn by another brand. Not quite.

Before it, the thoroughly mediocre Chevrolet Cavalier had a good run as No. 1 Before that, the tepid Ford Tempo. So, how has this little Honda stayed on top in Canada for so long?

Worldwide, the Civic is at least respected, if not revered. Yet its utter domination of any market is unique to Canada, where it was the top-selling car in March and through the first quarter of 2018. In the United States, it typically runs fourth, although for 2017 it reached a career-best second place. In the United Kingdom, where the popular-in-Europe hatchback is exclusively built, the Civic isn’t even in the top 10. In Japan, Honda doesn’t even sell the Civic any more.

Civic achieved its Canadian breakout in 1998, midway through its sixth-generation design (1995-1998). It had come close to dethroning the Cavalier in 1997, but in 1998 the Civic was on top by a healthy margin. Still, some qualification is required.

Twenty years ago, GM fielded the Chevrolet Cavalier its twin-under-the-skin Pontiac Sunfire; for several years, combined sales of Cavalier/Sunfire still exceeded those of the Civic, making GM arguably the small-car sales leader. But once the slower-selling Cobalt-based replacements were on the market, the Civic stood indisputably at the top.

ATTRACTING YOUNG BUYERS

What put the Civic on top in 1998? In part, the more-mature sixth-generation Civic had broader appeal than earlier designs, which were edgier and — in that era of the sport-compact craze — attracted youthful buyers.

As well, recalls Honda Canada senior product planner Hayato Mori, a mid-cycle freshening in 1998 introduced a new emphasis on value. The Civic was so well rounded — not a superstar at any one thing, said Mori, but at least good at everything — it kept gaining customers.

Solid reliability, which built owner loyalty and resale value, added further to a snowball effect that kept the Civic on top, despite periodic challenges from rivals such as the Toyota Corolla, the Mazda3 and the Hyundai Elantra.

Brian Murphy, vice president editorial and research at Canadian Black Book, said Civic usually ranks high in CBB’s rankings for retained values.

“Many Canadians recognize it as a safe bet when it comes to a good reliable used car.” John Bardwell, automotive product strategist for Bond Brand Loyalty, said that higher sales generate a self-perpetuating momentum that “drives greater awareness, greater penetration of the used market and, consequent- ly, higher residual values. Those higher residual values…allow a manufacturer to more easily afford to offer attractive enticements such as a 60-month zero per-cent lease.”

UPS AND DOWNS

For all that, the Civic hasn’t always been a paragon of prod- uct perfection. The staid 2001-2005 model, with a retrograde suspension that gave up the four-wheel double-wishbone design, showed disinterest in the Civic’s onetime enthusiast base (and there was no hatchback version).

The 2006-2011 Civic restored driver appeal and adventurous styling, but perhaps too much so for mainstream tastes. Then, in the wake of the Great Recession came the 2012-2015 design that dialled back the fun-to-drive factor but also, less forgivably, had lower perceived quality.

As if embarrassed by its previous vacillations, Honda began with a clean sheet for the current generation, benchmarking not only direct rivals, but also European premium compacts. The result has terrific driver appeal and also draws left-brain customers with fuel economy and one of the category’s roomiest, most comfortable cabins.

And like generations before it, the current Civic is still built in Canada. That, says Robert Karwel, senior manager of J.D. Power Canada’s Power Information Network, “adds a tangible benefit to the province and country every time a Civic is sold, which I think could help it with a leg up over some other competitors.”