by Honda changes its electric vehicle strategy
Honda is revising its electric vehicle plans due to slower-than-expected demand. Company President Toshihiro Mibe stated that the company is lowering sales targets and investments in electric vehicles. Although Honda considers electric vehicles key to achieving carbon neutrality by 2050, the market is developing slower than predicted.
Now, the company expects that by 2030, electric vehicles will account for less than 30% of its global sales. Some funds will be redirected to the development of hybrids and flexible production lines that can adapt to changing demand in different regions.
Hybrids and new technologies
By 2031, Honda plans to introduce 13 new hybrid models with an updated “H” emblem. Hybrid sales are expected to reach 2.2 million units per year by 2030. The company is also working on improving its e:HEV hybrid system, which will become 30% cheaper to produce.
For the North American market, Honda is preparing a new powerful hybrid platform focused on large SUVs. The first models are expected to appear within a few years.
Development of safety systems
The company is also investing in the development of advanced ADAS systems, which will improve the safety of both electric vehicles and hybrids. New technologies are planned to be introduced by 2027 in North America and Japan. Separately, Honda is collaborating with Chinese partners to adapt systems for the local market.
These changes indicate that Honda is trying to strike a balance between long-term environmental goals and current market realities. Flexibility in production and a focus on hybrids will allow the company to remain competitive in uncertain conditions.
