Honda changes plans: less electric cars, more hybrids
Against the backdrop of weakening environmental regulations in key regions and an unstable global trading environment, Honda has revised its long-term goals for electrification of its model range. This was announced by the company's CEO Toshihiro Mibe during a briefing in Tokyo on 20 May.
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As part of the strategy adjustment, Honda is cutting its previously planned investment in the development of electric vehicles and related software by nearly a third. The announced budget has been cut from 10 trillion yen to 7 trillion yen (roughly $69bn to $48bn). The reason for the investment revision was cited by Mibe as the easing of environmental requirements in North America and Europe, as well as the increasing complexity of international trade, which affects the sustainability of sales.
According to the head of Honda, the political situation in the U.S. and the revision of tax incentives under the Inflation Reduction Act, also creates uncertainty for the electric vehicle market. As a result, the company is lowering its sales forecast for electric vehicles for 2030: it now expects EVs to account for only 20 per cent of total sales. Previously, the target was set at 30 per cent. Honda now expects to sell 700,000 electric cars out of the planned 3.75 million vehicles.
Against the backdrop of the reduced focus on battery EVs, the company is going to strengthen its presence in the hybrid car segment. Starting in 2027, Honda will introduce 13 new hybrid models based on the new platform. Special emphasis will be placed on the North American market, where next-generation hybrids will get improved towing and off-road performance. Miebe said the new hybrid system will be at least 10 per cent more fuel efficient than 2018 vehicles while being half the cost of production.
Source: Autoblog
