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yesterday

Honda Revises EV Strategy, Prioritizes Hybrids as Market Shifts

The automaker reduces EV investment by 3 trillion yen, adjusts sales targets, and pauses a major Canadian project while committing to hybrids and long-term electrification goals.

Honda Chief Executive Toshihiro Mibe speaks during a news conference in Tokyo, Japan, Tuesday, May. 20, 2025. (Kyodo News via AP)
Image
FILE - A woman wearing a protective mask to help curb the spread of the coronavirus works near the logo of Honda Motor Company at a showroom on May 13, 2021, in Tokyo. (AP Photo/Eugene Hoshiko, File)

Overview

  • Honda has cut its planned EV investment from 10 trillion yen to 7 trillion yen through FY2031, citing a slowdown in demand and regulatory changes.
  • The company has abandoned its previous goal of 30% EV sales by 2030, now estimating EVs will account for about 20% of global sales by that year.
  • A two-year pause has been announced for Honda's C$15 billion EV production hub in Ontario, Canada, due to market challenges.
  • Honda plans to launch 13 new hybrid models globally starting in 2027, targeting 2.2–2.3 million hybrid sales annually by 2030.
  • Despite the adjustments, Honda reaffirms its commitment to achieving 100% zero-emission vehicle sales by 2040, including battery-electric and fuel-cell models.