What the overpriced Prelude is saying to Honda fans in PH
The Prelude of things to come?
About a year ago, a Prelude enthusiast asked if I thought Honda Cars Philippines was going to launch the Prelude.
My answer was based on how the brand has been doing for the past decade or so, and is as follows: (1) I don’t think they will launch, but (2) if they did, the price would be so far off that it’s not even worth waiting for.
As it turned out, I was wrong and right at the same time. I was wrong because Honda Cars Philippines is launching the Prelude hybrid coupe, and they’ve just started accepting reservations for the car. I was also right given the pricing which is verging on the outrageous at PHP 3.499 million.
Let’s put that pricing in perspective. The Prelude is significantly more expensive than the top variants of other popular 2-door cars like the Mazda MX-5 RF (PHP 2.630M), Subaru BRZ (PHP 2.719M), and Toyota GR86 (PHP 2.856M). Some would justify that the Prelude should be more expensive than those vehicles because it comes as a hybrid and not as a mere mortal ICE. For cruising, it should be good, and it also has the suspension set up of the FL5 Type R, but I’ll reserve my comments for it if I get to drive it.
Another issue we’re seeing is that the Prelude’s pricing puts it in the region of vehicles we would consider to be in a higher tier. The Ford Mustang Ecoboost (PHP 3.506) may not be premium, but it’s definitely larger. There are also two Germans in the price range with the BMW 318i Shadow (PHP 3.590M) and BMW 218i Coupe M Sport (PHP 3.690M). And if the 200 PS of the Prelude isn’t enough, then you can always spring for the Toyota GR Yaris AT PM (PHP 3.570M), the Toyota GR Corolla AT PM (PHP 3.955M), or even the Honda Civic Type R (PHP 3.870). The best deal here would be the Nissan Z (PHP 3.988M), thanks to aggressive discounts being offered of up to 1.1M.
I try not to comment on a new car before I’ve actually driven it, but I’ll make an exception on this Prelude. Even in North America, a lot of people are tagging the Prelude the same way at its price tag of about USD 47k in top trim. To put that in perspective, the Philippine pricing is already at USD 60k. At worst, it’s DOA. At best, I think it’s a tough ask.
Honda is probably banking on the name recall and nostalgia factor of the Prelude from Gen X and Millennials that have cash to burn on a purchase of a new toy of a sports car, even if it doesn’t really make sense in terms of outright performance or value. At least it makes sense in terms of no coding until 2028 if you plan to make it a daily driver, and it should also be very efficient as a hybrid. With the Prelude, you can "sportscar" every day, even in Makati, unlike drivers of MX-5, GR86, and Mustang!
What makes the Prelude interesting is that it shows us the full extent of Honda’s self-belief that they are a cut above. They believe their vehicles can command a premium over their fellow Japanese brands in the Philippines, which is why, if you look at their model range across the board, you’ll find all the models significantly more expensive than rivals.
Let’s focus on a Toyota and Honda price comparison. Some are actually comparable, like with the BR-V vs the Veloz, as well as the City vs Vios and Vios Ativ (except the City has no hybrid). But once we start looking at numbers, it’s quite glaring.
The Brio CVT ranges from PHP 827k to 863k, while the Wigo CVT is from PHP 690k to 735k. The Civic Turbo ranges from PHP 1.6M to 1.790M, while the Corolla Altis 1.8L is from PHP 1.213M to 1.333M. If we’re looking at Civic e:HEV at PHP 1.990M to Corolla GR-S HEV at PHP 1.746M, there’s really no comparison.
The pricing of the HR-V with two ICE models from PHP 1.450M to 1.519M and one hybrid at PHP 1.799M is also in the range of the Corolla Cross lineup (all hybrid and bigger) from PHP 1.514M to 1.943M, and all of those are hybrids and much bigger in dimensions. And if we look at CR-V and RAV4, it’s no factor as CR-V e:HEV starts at PHP 2.488M for the FWD to PHP 2.838 for the AWD, while the all hybrid (but all FWD) RAV4 lineup is from PHP 2.052M to PHP 2.377M. The highest spec RAV4 LTD HEV at PHP 2.362M is only PHP 4,000 more expensive than the cheapest non-hybrid CR-V at 2.358M.
What we are seeing with Honda is a different kind of strategy, one where they aim to be semi-premium and try to command a premium pricing with the matching premium profit margin. They like to tease us with a new model, but then shock us with the SRP. That's what happened with many of their models, like the CR-Z, the Civic, and the CR-V. It's actually more shocking with the Prelude because it's a hybrid. That means no import duty and no excuse at PHP 3.499M to be that much pricier than similar spec Preludes in Japan at JPY 6.48M (PHP 2.42M) or Preludes in the USA at USD 47k (PHP 2.75M).
Is the premium pricing and profit margin strategy with Prelude and the rest of the Honda lineup wrong? Not really. Each company does things a different way. The problem with that is going to be volume; if they’re content with the lower market share, then it’s fine, albeit dealers won’t be too happy.
They did do OK in 2025: in a year of so much red, they had a growth in sales at 4.76%. But the growth rate in 2025 masks the fact that Honda had been selling much fewer cars compared to a decade ago. In 2017, they logged 31,758 units. In 2025, they sold just 16,257 units.
Fewer and fewer sales numbers compared to other brands mean less service income potential; that’s the bread and butter of a dealership. And Honda doesn’t command the same exclusivity from dealer partners as Toyota does (if you open a Toyota dealer, you cannot venture into other brands). That can entice other dealers to switch brands altogether. Want an indicator? The Ayala group (which also handles BYD and Denza dealerships) decided to let go of its stake in Honda and let go of its 9 Honda dealerships last year. One does not make a decision that impactful unless they see limited potential in a brand’s future.
Honda fans will also lose out because, as the prices go up vis-à-vis other Japanese rivals, only the most loyal customers and enthusiasts will continue to patronize their cars at the premium prices. New customers will likely look at other Japanese brands with more palatable value propositions or even take a chance on Chinese brands with far lower SRPs. If they keep at it, Honda could become a niche auto brand in the Philippines, and that will be a real shame.
Yes, the Prelude is overpriced, but it’s a sign of the route Honda has chosen to take.
