Honda Accord SUV planned as Subaru Outback rival

Japanese automaker Honda is reportedly considering a lifted, SUV-like version of its Accord sedan, with added ground clearance and a higher driving position to rival the Subaru Outback.

The plan has not been officially confirmed by Honda, though according to Automotive News the project is known internally as the 'Accord SUV', with production planned to begin in 2029 alongside a redesigned Accord sedan.

Targeting the US market, where Honda sells more vehicles than in any other market, the Accord crossover could be produced alongside the sedan body style in Marysville, Ohio, and be priced similarly.

The current Honda Accord sold in Australia is built in Thailand and offered in a single hybrid model grade priced from $64,900 drive-away.

The Accord SUV could also be built at a new US site after Honda North America CEO Toshihiro Mibe told Autonews: "I want to increase the number of sales in North America a lot. The basic idea is to produce in a place where there is demand."

The SUV would directly target the Subaru Outback, which recorded 157,716 sales in the US in 2025, making it the country's 23rd-best selling passenger vehicle. The Outback is a wagon derivative of the Legacy sedan, which was previously sold in Australia as the Subaru Liberty.

The new-generation Outback arrived in Australia in late 2025 priced from $48,990 before on-road costs. Entry-level variants are powered by a 2.5-litre naturally aspirated four-cylinder engine, a continuously variable transmission (CVT), and all-wheel drive.

Subaru Australia sold 8384 Outbacks in 2025 and 2436 in the first six months of 2026, comfortably outselling the Accord, which managed just 98 sales in Australia last year and only 29 so far this year to the end of June.

The Outback is currently not offered with a hybrid powertrain, despite the Crosstrek and Forester SUVs being available with Subaru's 'e-Boxer' hybrid system in Australia. The Crosstrek's older hybrid system is set to be replaced by Toyota-sourced powertrains as part of the partnership between the two Japanese brands.

The mooted Accord SUV would reduce development time and costs by sharing its architecture and components with the next-generation Accord sedan.

The Honda Hybrid Sedan Prototype was revealed earlier this year as a preview of the next Accord sedan, which will be powered by a new-generation hybrid powertrain that Honda says costs 30 per cent less to manufacture.

Previewed in a Civic prototype, the powertrain uses a 2.0-litre Atkinson-cycle four-cylinder petrol engine with direct fuel-injection, a revised cooling system, and a new electronic all-wheel drive system.

Honda says it delivers 10 per cent better fuel economy than its current hybrid powertrains. In the Australian-market Accord, the existing hybrid system has combined fuel consumption of 5.4L/100km.

Honda Australia CEO Jay Joseph, who took over the role in April 2025, spent almost three decades at Honda North America.

In mid-2025, Mr Joseph told CarExpert the experience and contacts from his previous posting enable discussions that could increase the chances of more US-sourced Honda models coming to Australian showrooms.

MORE: Explore the Honda Accord showroom