by Volkswagen Attracts Honda Owners with Financial Incentives
Automaker Volkswagen is resorting to an aggressive marketing strategy, offering significant financial incentives to Honda car owners to switch to its models. This campaign includes cash bonuses that do not require a mandatory trade-in of the current vehicle.
Goal of Customer Acquisition
Volkswagen is clearly trying to undermine loyalty to the Honda brand, believing that its offers can convince drivers to switch from the Japanese manufacturer to the German one. Although the exact reasons for this choice are not disclosed, it is obvious that the company sees potential in this audience.
Bonus Eligibility Terms
To receive the $2,000 bonus on the 2025 Tiguan model, a household must have a Honda from 2015 or newer registered. This offer is valid for leases through Volkswagen Financial Services or Wells Fargo. Additionally, the 2025 and 2026 Taos model has a $750 incentive.
This offer combines with all other Volkswagen programs, — stated Rachel Zaluzec, Senior Vice President of Marketing and Customer Experience for VW America.
Campaign Duration and Terms
The campaign started on October 1st and will last until January 5, 2026, giving Honda owners enough time for a test drive and decision-making. Importantly, participation does not require trading in your current vehicle.
Advertising Campaign and Targets
To spread the information, Volkswagen launched a national advertising campaign covering social media, streaming services such as Hulu, Prime Video, and HBO Max, as well as traditional television. The commercials compare the Tiguan to the Honda CR-V, emphasizing the more powerful engine and lower maintenance costs.
The target customers are very similar, — a Volkswagen representative reported. — We knew that the characteristics of the new Tiguan would be attractive to those who drive the CR-V. If we want to introduce someone to Volkswagen, especially the Tiguan, this was the perfect audience for us.
Market Performance Context
This campaign is launched against the backdrop of declining sales of the Tiguan and Taos models. In the third quarter, Tiguan sales fell by 23%, to 48,951 units, and Taos sales fell by 15%, to 40,524 units. In contrast, the Honda CR-V showed an increase of 3.1%, reaching 307,501 units, keeping it in second place among compact crossovers in the US after the Toyota RAV4.
This approach by Volkswagen may indicate increasing competition in the compact crossover market, where traditional leaders like Honda and Toyota continue to dominate. The offer of cash incentives without the need for a vehicle trade-in could be an attempt to attract customers who previously did not consider Volkswagen due to the high cost of switching. The success of this strategy will depend on how much the advantages of the German models outweigh loyalty to the established brands.
